Q: I'm being sued for medical bills. Asked for reduced offer & monthly payments was told no. What can I do?
I sent a letter requesting a reduced settlement amount and monthly payments to settle the debt. I was told they would not do payments that it had to be one lump sum and I can't afford that. I've received the subpoena from the court and have no idea what to do to get this resolved as I can't afford to have them garnish my check. What can I do to get this taken care of?
A:
You have a few options. Have you considered bankruptcy? If you significant unsecured (credit cards, collection accounts) debt, I suggest you consult with a bankruptcy lawyer.
Do you deny the debt or can you object to the amount of the alleged balance? If so, you can fight. Hiring a lawyer is often too expensive for consumers so if that is not an option, do the best you can.
If you have already filed bankruptcy or do not wish to do so, and you have no defense to the debt, I suggest you show up in court and provide your financial information as requested in the subpoena. Judges will sometimes convince creditors to enter into installment arrangements. However, the judge could just as likely permit them to take a judgment and begin collection activity. Your goal is obviously to avoid garnishment. Since the creditor will not take anything less than full payment, your only strategy (with the exception of bankruptcy) is to show up in court and see what happens.
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