Debt Collectors *sigh*

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Well I was in an accident a little over a year ago and got sent a 41000 bill in the mail I totally forgot about it until I got a phone call from a debt collector that I owe them 41000 dollars htf am I gonna pay that much money since I only make 14k a year? I had an anxiety attack yesterday after receiving the phone call and told the collector my situation that I dont have that kind of money or health insurance she said shes gonna mail out a form for me to sign and mail back something I might qualify for, I am kinda nervous about this whole ordeal. I couldnt sleep last night after being reminded of the debt that I will never be able to pay back with my current income unless I won the lottory or something I wish hospitals werent so expensive another reason I hate em. I dont know whats going to happen I am nervous.

Get a lawyer. Those debt collectors are mean and won't give up once they've confirmed that the debt is yours.

This confirmation will be made once you sign the document they send you. It is essentially an admission of guilt and a contract to pay them off.

Sign nothing until you've consulted a lawyer, or you'll be signing away your right to bankruptcy and your freedom to travel outside of the country.

Trust me. Been there, done that, finally got 'me off my back.

I know that here in Australia we have companies who'll help you work out a debt repayment plan based on your income, and they also help you to communicate with the debt collectors. I'm not sure what they're called, but I would think that you'd have them over in America too.

What Fnord said. I'm in a similar spot; a psychiatrist who I hope I never see again had the gall to sick a collection agency on me over a missed appointment which I skipped after he pretended to know more about my own profession. iPhone user pretending to care about digital security. Kthxbai. I just tell the callers the truth that I'm busy and lie about calling them back. I'm insured & everything I just don't think anyone with more than three framed degrees on their wall needs either A: more cash B: a larger ego. Good riddance.

Depending on what your state laws provide about debt collection, the debtor might be just a few years from any such collection being prohibited. In my state, the statute of limitations on the collection of a contractual debt must originate within four years since the last contact that the creditor had with the debtor. So, if the debtor makes any contact with the creditor (like answering a letter or telephone call from the creditor), the four-year clock starts over.

If the debtor has reviewed his or her financial status and believes that there is no way to pay the debt under the offered terms, Nolo.com http://www.nolo.com/legal-encyclopedia/ ... n-agencies has some very good basic information about the laws that govern debt collection and how to resolve debts. One of the best (if it applies) is to notify creditors of the debtor's "judgment proof" status whereby any court judgment against the debtor that the creditor might receive can't be paid. When most creditors are notified of this status, they back away quickly and quietly. They realize that there is nothing to be gained by paying to go to court and get an unenforceable piece of paper. But, if the debtor owns anything of record (motor vehicles, recreation vehicles, real estate, non-exempt trust funds, retirement accounts or other bank accounts) or ordinary income, those things can be easily found, garnished and seized to pay part of the judgment.

Other options include negotiated settlement where the debtor pays less than the amount demanded (usually in one lump sum), debt-consolidation loans (usually from family and friends who might be more lenient about terms of repayment), bankruptcy and selling tangible assets to help pay the debt.

In any case, look into your options before making any decisions. Speak pleasantly to collectors if you choose to do so, but federal law requires them to contact you only by mail if you request that they do so. This can make home life a little easier. Also, understand that collectors are really, truely just doing their jobs. They don't care about your reasons for failing to pay. So, it is a waste of time to try convincing them. Once you have decided your game plan (lawyer, loan or bankruptcy), stick to it. Trying to play nice by paying a little when you know that you can't pay off the whole debt is a wasted effort and ends up costing much more.

Good luck.

Definitely. You NEED a lawyer, Otaku. You might have to file for bankruptcy, but it's cheaper than spending the rest of your life paying off debt collectors. Debts are resold over and over again, and even though you may have made payments the new owner of the debt demands the original account in full.

Where did you live a year ago? (You said in another post that you recently moved.) Can you get access to mail sent to you at that address? One of their favorite tactics is sending a court summons to an address that the debtor no longer lives at or has access to, and then when the debtor doesn't show for the court date the debt collector requests a judgment by default. After that's granted, they seize your bank accounts, your income paychecks (up to 25% of each check), etc.

If you have a lawyer, you can tell the debt collector to contact your lawyer in all further proceedings, and they HAVE to send a court date to him/her, not you. If you show up to court with a lawyer in tow, they won't be able to scurry away fast enough, it's their worst nightmare.

I remember being in an accident years ago, I was short of breath due to bruising from the seat belt, and after telling that to the cop I was quickly strapped to a board and loaded in an ambulance. I loudly refused medical treatment, and was told that I could not legally refuse medical treatment if the responding cop determines it's necessary. So I was taken to the hospital, where I was given unnecessary x-rays even though I didn't have neck or back pain.

I gave them my insurance cards. A few weeks later I got several bills totaling around $1000. I called them and told them that I had given them my insurance cards, and was told to pay cash or deal with a debt collector since my insurance was not accepted. Medicare and Medicaid are not accepted? It took me some time to get them to take my insurance. You shouldn't have ignored the bill, they will send you to a debt collector quickly. The hospital always refuses insurance, since a cash bill is marked up substantially.

I suppose so I am just not used to this kind of thing I could file bankruptcy but it will ruin my credit a lot and wont be able to file it for another 8 years but I guess its the only other option. I am considering also getting into a low income program that will reduce my debt so either way it may work out. Just knowing a 40k plus debt i cant pay that off Ill die of old age before it is paid off unless I win the lottory!

Was this a car accident? If you weren't at fault for it your medical expenses should have been covered by the other drivers third party insurance (providing they had any. In Australia it's compulsory to have before you can register your car).

Echoing what other people have said. See a lawyer. Don't give them a single penny, and save any money you do have on legal help rather than giving it to the debt collectors. It could be that if you don't, they will find a way to legally take the money from you anyway. Lawyers are expensive but the $41,000 debt and threat of bankrupcy justifies it.

Also tell a lawyer about your ASD, I believe it is a trait of ASD to not be able to face mail, paperwork, this sort of thing. I have not paid bills before due to being too anxious to phone people up, or to sort them out, even when I can afford them.

Indeed, they do. But, for the last 35 years, I have always worked directly with the creditor itself, not its collection agency. Agencies automatically add their fee (and sometimes, that of any lawyers who work for the agency) on top of any debt collected. If the debtor owes $100 to a creditor, watch how fast that amount turns into $450.

No, it is best to worked directly with the creditor if and when the debtor chooses to pay off the debt. Creditors simply want the payment that is due to them, nothing more. It is easier to work with creditors in terms of payment arrangements and less-expensive lump sums. Of course, this really upsets their collectors who want their piece of the pie, but I have never had my offer of payment declined by a creditor. If collectors get upset for that kind of negotiation, that is their problem. In my state, at least, I am legally able to negotiate with either party for settlement, and my experience tells me that working with the creditor is best. They are much more forgiving if they get most of what is owed.

Pay them 41000 I cannot afford?

Hope this helps...

This is why we're in the bind we're in--lack of health insurance for many in this USA of ours!

Don't sign anything. There must be some kind of free "legal aid" in your city. Maybe you could show one of those free lawyers the debt collection letter.

Maybe, as a poster stated previously, you were not found at fault in the accident--maybe it's the obligation of the at-fault driver's insurance company to pay off that debt.

Debt brokers. They will pay off your debt, then you will be in debt to them - with interest - for the rest of your natural life.

My sister once had an accident while she was uninsured. The lawyer for the other driver was brutal. Filed paperwork making it impossible for her to get a drivers license in her home state until she had paid her debt. She never did get it paid but it was over 20 years before everything finally disappeared from the system and she got licensed again.