This toolkit tells you what you need to know about talking to creditors and debt collectors before they sue you in court. For general information about your rights and options when talking to debt collectors, read the Articles. Read the Common Questions if you have a specific question.
You'll find links to legal aid offices and lawyer referral services under Find A Lawyer. If there is a Self-Help Center in your area you can get more help there. If you need something other than legal help, look in Community Services. If you need a fee waiver, an interpreter, a court to accommodate your disability, or more information about going to court, visit Going to Court.
Common Questions
You might be uncollectible if all of these conditions apply to you:
- You have limited income that only comes from specific sources
- You have limited assets and/or savings
- You don’t have any money left over after you pay your bills to pay your debts
Read the article Are You Uncollectible? to learn more.
You can send a creditor or debt collector a letter asking they stop contacting you about the debt. You can also send a letter explaining that you are uncollectible and asking for a “charge-off” of the account as a bad debt.
Getting a charge-off does not mean the debt is discharged. You still owe the debt. Having a charge-off on your credit report can do significant damage to your credit score. Your creditor can still try to sue you to collect the debt.
Read Are you Uncollectible? to learn more.
Being uncollectible might not stop creditors from suing you. If you are sued, respond to court papers and do your best to defend your case. Read the article Going to Court to Defend a Debt Collection Case to learn more.
A creditor with a judgment against you can try to collect it by garnishing you or seizing your property. Being uncollectible means you don’t have money that can be garnished nor property that can be seized. So your creditor has very few options to collect the debt.
If a creditor tries to garnish your exempt money or income, you can object to the garnishment. Read the article Objecting to Garnishments to learn more.