On Social Security Disability, questions about debt collection.

**Seeker** · 06-17-2009, 05:41 PM

Originally posted by SeraphisCain View Post

Okay, I'll try to make this as short as possible. I've racked up quite a large debt in medical bills over the past seven years (I'd estimate about $40,000 at this point). A few years ago I was declared disabled and got on Social Security Disability. I have one particular collection agency after me (they carry the majority of my debt). I've read that Social Security Disability is exempt from collection, so that's not a huge issue. What I'm worried about is if they get a judgment against me, can they take my personal belongings? I'm not exactly sure how that part works. After rent, bills and food and other necessities, I'm near broke by the middle of the month. If I could afford to pay the collectors, I would, but I just simply cannot. And even if I could, I'd be paying them something like $25 a month for the rest of my life, and I'd never even touch the actual debt, only the interest.

But anyway, back to my main point. They can't collect from my disability payments. I know this. But can they take my belongings? They're a third party collection agency, not government or credit card related in any way.

Thank you for any advice.

You need to lookup Personal Property Exemptions from Debt Collectors.

These laws and exemptions differ by state. And you may have to make an application for exemption for some items (such as an automobile etc). For example, this is Illinois Illinois Pro Bono | Money and Property Exempt from Judgments Your state will probably be different (either in monetary value or items).

**Seeker** · 06-17-2009, 07:24 PM

An excellent site:

Asset Protection Concepts and Strategies by Riser Adkisson LLP

**happygirl** · 06-18-2009, 02:39 AM

If your bills are for medical reasons and you qualified for SSD, shouldn't you also qualify for medical assistance, with the bills being used for your spend down?

Call you local DHHR/DSS and talk to a benefits coordinator. I don't really understand how you got SSD without this issue being addressed along the way.

Good luck!

**melissa15531** · 07-22-2009, 12:20 PM

I am on disability also and the state of PA says I make to much money for the medical card?? I had this card before I went on disability abd they took it off of me and forced me to go on medicare to which I have to pay $96 monthly and $127 every 3 months for supplimental insurance. It is a joke. My advice would be to call your debtor and ask if they have a write off policy. Here they have hillbarton which if you cannot pay they write it off. My husband had no insurance and was hospitalized last year for a week against his wishes and was charged $25000. We called the billing office and said there is no way we can pay this and they wrote it all off. Thank god.

**PetMom** · 07-24-2009, 07:16 AM

We had to buckle to a hospital in what they were demanding we pay and when with the threat of a collection agency.

I am pretty sure the hospital (original creditor) will not deal with you once they write off and sell to a third party collector (I may not have gotten in your post if they even tried to work with you originally).

You got some good answers already: it depends on what state you are in what they can do.

And do today what happygirl suggested - someone should be helping explain this whole quagmire of what has happened and explaining how you go about this and what you should do.

Do not let these third party harrassing collectors tell you what they can do, find out the facts and don't listen to their threats.

I am so sorry you are going through this - I am sure it is stressful - please make some calls to get to a solution.

On Social Security Disability, questions about debt collection.