Possible legal issues related to debt and disability

[velcrowings]

I am currently unable to pay a lot of credit card debt (with several creditors) as my CFS has worsened, leaving me unable to work. I am concerned I may be summoned to court at some point because of this; however I am housebound and having to go to court would be extremely detrimental for my wellbeing. My CFS is probably at the upper edge of moderate and any form of stress or overexertion usually makes me worse.

I don't currently have official disability status yet and don't currently have any doctors or health insurance and am not sure if I have the time to jump through the appropriate hoops before things may get worse as I've already defaulted on my credit card payments for around 4 months now.

What would you recommend in this situation? If I have a letter summoning me to court can I provide a doctor's note so I don't need to appear? Would the state appoint a free attorney to appear in my place? Do they offer hearings online in such cases? Is there anything I can do in the meantime before the situation progresses to this?

 

[andyguitar]

Is there anything I can do in the meantime before the situation progresses to this?

Have you been in touch with your creditors and told them aout your situation? If not I would do that first. Best not to let things drift to the point you start getting letters about legal action. I'm from UK so cant really comment on your other questions. Anyone from USA with advice?

 

[Rufous McKinney]

What would you recommend in this situation?

maybe file for personal bankruptcy? Which would eventually entail a hearing/ like court.

Or negotiate with the creditors by phone and try get a pay them back over a longer time frame?

 

[Mary]

@velcrowings - I agree with the others to contact your creditors and explain your situation. I don't think you need to worry about getting summoned to go to court. I think that would only happen if you got sued by these companies in which case you'd get served with papers etc. and that's a long ways off. But if you talk to them, they shouldn't sue you, at least not while you're making a good faith effort to deal with this. Lawsuits cost them money too.

The court won't appoint an attorney if one becomes necessary. That only happens with criminal cases, not civil lawsuits.

 

[velcrowings]

@Mary I've already called some of my creditors to explain the situation, and they've suggested me to set up payment plans, which I can't currently afford to do. Is there any "good faith effort" I can make without being able to afford to pay? As I understand it, if I don't set up payment plans, my debts will eventually be sold out to debt collectors, who may eventually sue me.

 

[Mary]

Is there any "good faith effort" I can make without being able to afford to pay? As I understand it, if I don't set up payment plans, my debts will eventually be sold out to debt collectors, who may eventually sue me.

I'm afraid I don't know the answer to this. You might try contacting NFCC - National Foundation for Credit Counseling - and see if they can help. I read that their services are low or no cost. https://www.nfcc.org/
and someone on Reddit had a good experience with them. At least I'm sure they could answer all your questions.

 

[Rufous McKinney]

I looked at several web sites mostly not helpful.

this web site seemed to have some possibily helpful ideas......

https://www.solosuit.com/posts/cc-debt-forgiveness-disability

 

[velcrowings]

@Mary and @Rufous McKinney Thank you!

 

[SickOfSickness]

Just the fact that you've applied for disability (if you have already, or if you complete that one step soon) would probably make some difference. I agree that you should be getting free assistance from a consumer credit organization, however, they might need to know that you've applied. Depending on your current income and assets.

However, don't rush on an initial application either (if you have not yet applied) since what you omit or include at each step can make a big difference.