I’m 38 and have worked full-time since I was 18, always paid my bills. But the last couple of years have been rough… my fiancé disappeared, two of my kids were diagnosed with lymphoma, and I started having serious health issues, including migraines and tremors. I told my job about my ADHD and requested some small accommodations, but instead, they let me go.
Now I can only manage basic bills like rent, food, and utilities. I stopped paying on several credit cards since all my money was going toward my kids’ treatments. A few months back, Capital One reached out to try to set up a payment plan on a $2,000 balance. I couldn’t afford it, even after selling most of my stuff. I offered a lump sum of $800, which was all I had, but they wouldn’t budge below $1,800.
Now, I just got notified that they’re suing me. Are there any protections for disabled folks that might help me, or is my only option to declare bankruptcy? My total debt is under $10k, but the thought of more debt collectors coming after me is really stressing me out. Any advice would be appreciated.
If you owe the money, they can sue. Next, they could garnish wages if they win in court. Maybe you could call them and offer a small monthly payment like $5-20. Also, check if the debt is old enough to be past the statute of limitations. I’m just a random person on this forum, not a lawyer. Good luck!
You might want to talk to a lawyer about wrongful termination. Firing someone for disclosing a medical condition and asking for accommodations doesn’t sound legal, even in at-will states.
Uma said:
You might want to talk to a lawyer about wrongful termination. Firing someone for disclosing a medical condition and asking for accommodations doesn’t sound legal, even in at-will states.
Oh yeah, I’m looking into that. It was totally unfair.
Not a lawyer, but you owe the money, so they have grounds to come after you. If they win in court, they can enforce payment through things like garnishments or liens. Bankruptcy could be an option, but it has its own costs, so it’s worth speaking to a bankruptcy attorney for a free consultation to weigh options. Filing for less than $10k isn’t ideal, but every situation is unique. Good luck!
I’d prefer a payment plan rather than going through bankruptcy or a judgment. My credit has always been good until now, and I don’t want to wreck it. I just need them to lower the debt. Are there any protections for people with disabilities that could reduce what they can pursue?
@Ali
Instead of focusing on getting a debt reduction, see what you can afford to pay regularly. Even if it’s only $25 a month, offer that. From my experience, negotiating a debt reduction can be tough. I ended up filing Chapter 7 after failing to get reductions. Try your best to set up a plan with them to avoid a judgment or bankruptcy.
@Ali
You could try writing a hardship letter and send it to each creditor and the attorneys handling the lawsuit. Include your situation and ask if they’d consider dropping the case or at least pausing it. When you receive the complaint, make sure to respond and mark any defenses that apply. This could buy you some time to get back on your feet.
Definitely talk to a lawyer and keep medical records as proof of your situation. Bring these records to court if needed. If you haven’t already, look into disability benefits. It might be an option depending on your health and work situation.
They might be willing to settle for less if you can prove hardship, like through social security disability records. Some creditors will wipe out the debt as uncollectible if they see proof of your situation.