I live in Montana. I have $38,000 + in medical bills, all turned over to a collection agency. Was making $100/month payments to agency w? the last pymt Oct 26th. They were to send me a new financial form to fill out, but didn't. Did send me a letter stating the full amount was due, if I felt I couldn't pay contact them, etc... This week I got two letters stating there's been a judgment entered against me for garnishment. I tried talking to the collection agency to work out more payments, but they won't. They said there's nothing they can do because it's their company policy. I'm a single mom, barely making ends meet, I work full time and can't afford to have my wages garnished. I don't know what to do. I can't lose my only vehicle and my mobile home.
Any advice would be much appreciated. Thanks!
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Hi Crrstewart,
It cannot be against company policy to try to settle debt. I hope you have proof of the fact that you have already paid them some of the amount. I would suggest you to try and convince the collection agency to go for debt settlement.
Even after getting a judgment it takes sometime before one can actually garnish your wages. So you still have some time to negotiate with them. However, if they are not ready then, you can file bankruptcy since it will be the only option left for you. You can either file a chapter 7 bankruptcy or a chapter 13 bankruptcy. Filing a bankruptcy will stop any means of collection. However, this will hurt your credit score.
I believe I would let them know that you have only have two options one is to settle the debt and pay less or file for bankruptcy. That way if they know you are planning on filing bankruptcy they will probably work with you. Because I'm sure they would rather get some money instead of no money at all.