They wont accept what I can afford as a minimun monthly payment.?

Question

I recently had a $1500 hospital bill charged off to a collection agency, and I told them that starting off I could make $50 a month. The rep told me that in order for me to be on a $50/month plan I need to pay 1/3 down, and thats arounf $500, for the first payment, and then I can do $50/month. Well that payment is due in a week, and the rep said that they may garnish my wages about 25%. What can or should I do about this? I mean I know what I can afford, it's not like I don't want to pay anything.....

Answer 1

First thing to do is see if the debt is beyond your states statute of limitations to take you to court to garnish anything.

North Carolina, Pennsylvania, South Carolina and Texas — do not allow wage garnishment at all except for debts related to taxes, child support, federally guaranteed student loans, and court-ordered fines or restitution for a crime the debtor committed. Several other states observe maximum thresholds that are lower than the 25 percent maximum provided by federal law. States may also prohibit garnishment altogether in certain circumstances. For example, in Florida the wages of a person who provides more than half the support for a child or other dependent are exempt from garnishment altogether (though this exemption is subject to waiver).

Here is a link to check your states SOL

http://www.bcsalliance.com/statute_of_li...

If the debt is beyond your states SOL, then tell them you are aware that the debt is "time barred" and to go pound sand!!!! also tell them that under the FDCPA the making of false threats is illegal (telling you they will garnish your pay when they know they can not)!

All they can do is keep sending you letters, but they have no legal recourse.

Medical bills fall under the Fair Debt Collection Practices Act because medical debt meets the definition of a "debt" under rule 803(5):

If it is time barred, then just let it ride out the reporting period of 7 1/2 yrs on your credit report, then it will drop off.

Hope this answers your question

LEGAL DISCLAIMER: The advice contained herein is for informational purposes only. It is not to be construed as Legal Counsel nor Legal Advice.

Answer 2

You should send what you can. If they accept, then they can't make stipulations on your repayment plan.  

Answer 3

send them the 50, if they accept it they can't garnish your wages, they were probably bluffing anyway, call them back, you will most likely  get someone else, tell them that you can only pay 50 a month

Answer 4

You didn't say what state you live in.  Some states like New Jersey and California are garnishment states.  In my case, I live in Pennsylvania and they can NOT garnish your wages.  Check you state law.

Answer 5

They have to get a judgment in order to pursue garnishment of wages. They can't just take your wages if you can't make the 1/3 payment next week. Where I live, after a court order, they can garnish wages up to 20%. But a court order has to be in place to do that. If you're what is called "execution proof" they may not be able to garnish anything depending on your wages and whether or not you're at or below poverty level. And all of this depends on your state laws.

  

Answer 6

Ignore it, they can do nothing as long as you send them $50.00 a month on a regular basis exept harass you. You are making an attempt to pay.

They can't garnish your wages without a court judgement.

it took 3 years for my son to finally get garnished for back rent on an old apartment, so just keep paying and keep telling them you are paying what you can afford.

Keep records of when and how much you have paid showing a regular payment, if you do this with the hospital they can't charge it off.

A Charge off on your credit, paid or unpaid is BAD.

Once it is done there is little you can do except keep paying.

if you go to court, they will add charges, Fees and Court costs on.

Then they will garnish at any job you work for and some employers frown on this and will fire you for it. Especially if you have a job handling money.

Answer 7

before they garnish your wages they would need to get a judgment against you. Call and ask to speak to somebody else because most collection agencies are willing to work with you. The wage garnishment  threat is a scare tactic that all collectors use. Most try to avoid going to court BUT it is still an option. Good luck

Answer 8

They can only garnish your wages if they sue you and get a judgment.  Call them back and offer the $50/month.