What happens when I send a letter to the collection agency stating that I am "collection proof" and I can't pay my bills (creditors, debt)

[lpowell5623]

Okay, you see I get bill collectors contacting me every single day throughout the entire day, and I sent them a letter stating that I am collection proof, I can't pay my bills since I don't have no income or anything and to stop further collection activity. What happens after that? Do I still need to pay my debt still? Please help me. Thanks.

[Avengerfire]

Pay them $5 a month each until you can get something in order. Maybe you should try bankruptcy?

My advice is get a laywer.

[Karla with a K]

Originally Posted by lpowell5623

I sent them a letter stating that I am collection proof, I can't pay my bills since I don't have no income or anything and to stop further collection activity.

The only way you are collection proof is if your only income is from SS or SSI some pensions are collection proof as is child support and you have no assets. But other than that they can still collect.
You can send them a cease & desist letter so they no longer can contact you, but that won't stop them if they should decide to pursue legal action.

[CreditWitch]

That is a sure fire way to get hauled into court. Karla, I am curious why you think limited income excludes one from suit? Do you have a case sample you can share? Are you speaking of a specific state statute?

You have already admitted you owe the debt to the collection company. Your letter did not state do not contact me via phone? Best bet is to reach a settlement and a payment plan with them. Depending on how large the collection is, they may test your "collection proof" in court. Times have changed and everyone is fighting tooth and nail for their debts. Another thing a judge will look at, did you create the debt knowiung you would never have the means to pay it. You will get your wages garnished.

Food for though.

[Karla with a K]

I guess I should of said "judgment/garnishment proof" to be more clear.
the incomes I mentioned are garnishment proof meaning should the creditor decide to go for litigation when they can't collect they can not garnish the above forms of income.
So many creditors will not spend the time or court costs to seek a judgment when they know they can't collect.

I completely agree that he if he knows he owes the debt he should pay especially if he used the credit and there was no income to repay.

[FarNorthDallas]

Talk to a bankruptcy attorney.

[RoaminRed]

I would assume that you are capable of working, since you mention no income (which would mean you're not getting SSI or welfare). So, get a job, and start paying the debt.

Since you incurred the debt, at least make a good faith effort to pay it back. Call your creditors, try to get them to reduce it some way, and make a payment arrangement. They're a lot more willing to work with you if you actually make an attempt rather than if you run away from it.

[myrc60]

Originally Posted by RoaminRed

I would assume that you are capable of working, since you mention no income (which would mean you're not getting SSI or welfare). So, get a job, and start paying the debt.

Since you incurred the debt, at least make a good faith effort to pay it back. Call your creditors, try to get them to reduce it some way, and make a payment arrangement. They're a lot more willing to work with you if you actually make an attempt rather than if you run away from it.

Nothing in the post suggests the OP is capable of working but I can tell you from experience that it is possible to "run away" as you mention above. Don't answer your phone and get rid of voicemail. If you win powerball you can then pay your debt. Thats my plan.

[stacylee926]

I guess my suggestion is to find some type of work and pay your bills. If you 'cannot' work, there must be ways to make money anyway by using your computer.

Either that or sell the computer and stop the internet in order to pay bills

[HappyTexan]

There is no free lunch. You took on debt that should be repaid. Get a job at the Wallymart and send in what you can. Work out a payment schedule.