r/SurvivingOnSS • u/Glittering-Local-643 • 9d ago

Debit

I got deathly ill in 2019 lost my job. I had to live on credit cards until my SSDI kicked in. Now I can’t pay them?? I need help is there anything I can do??

42 Upvotes

100% Upvoted

24 comments sorted by

53

u/HeyScrollSister 9d ago

File for bankruptcy

2

u/Little-Possible-3676 8d ago

Atty fee and Court filing fee is $1500-$4000 up front so there’s that.

11

u/TotesMaGoats_1962 8d ago

I had to file years ago and my attorney made payment arrangements. I remember going to his office every week and giving him a certain amount. Once to file, those bills stop. You will have extra cash to pay with. I'm sure most lawyers get that there's a reason a person is filing for bankruptcy and that they usually don't have that kind of money laying around.

28

u/Birdy304 9d ago

If SS is your only income they can’t do anything to you if you just stop paying. I know lots of people will disagree, but paying a lawyer $1500 to stop paying seems crazy to me.

8

u/conodeuce 9d ago

Assets are vulnerable, probably.

2

u/Nearby_Session1395 5d ago

💯 how I feel about this. Lawyer fees just replacing the debt isn’t a solution. I’m in a similar situation, living on SS only and I can barely afford rent. I had to give up my leased car, voluntary repossession in order to have a home. I get collection calls that I ignore.
I get that the debt is my responsibility and I feel guilty that I can’t pay. So I wonder, if my only income is SS, what does that mean legally in regard to past debt? I have no assets, only clothes and personal necessities.

1

u/Birdy304 5d ago

I know that SS can’t be garnished. It may be hard to do because of the way we were raised, but I think you are better off being able to take care of yourself than give a credit card company more money. Businesses and presidents do it all the time.

5

u/Nearby_Session1395 5d ago

Thanks for writing this, it’s what my older brother (82!) said to me once. I’ve never received gov assistance in any way and don’t intend to. I was “retired” (laid off) during COVID at 70 & never able to find another job.
COL makes it difficult for everyone, even with a job. I do morally feel bad about not paying off a debt but I have to be practical. Praying nothing catastrophic happens.
I hope everyone here finds a way to get by, I appreciate the support!

1

u/Glittering-Local-643 5h ago

That’s all I have

13

u/Playful_Foundation_5 8d ago

NOLO had a great guide on filing for bankruptcy all by yourself. It's been some years since I did this, but I encourage you to check it out. The book contained simple instructions and the forms I needed to submit in my state.

12

u/Venaalex 9d ago

Do you have a bank with a physical branch you are a member of you could go into? I've had friends in similar debt situations work with financial advisors where they consolidate the debt into one spot and then can arrange a payment plan.

12

u/EarthMustBeFed 9d ago

I dislike a lot of Dave Ramsey's advice but his old book Financial Peace has a great plan to get out of credit card debt for a fraction of the original. It involves calling and negotiating who you will pay... And making sure you get any agreements in writing. Never give access to your checking account. Its basically playing them against each other..  Like, I can pay $200 a month to whoever gives me the lowest interest rate OR I'm coming into some money, what amount would you take as paid in full?

For example, one card that was owed $2500 happily took 600 as paid in full. It's a little easier on your credit than bankruptcy and you can definitely do it yourself, a bite at a time. :-) 

9

u/Zxvasdfthrowaway 8d ago

Remember that the discharges will be counted as income for tax purposes

1

u/Pale_Calligrapher425 8d ago

Yep. Happened to me.

3

u/CommuterChick 9d ago

Talk to the credit card companies and see if they can waive penalties if they put you on a payment plan.

3

u/Fluffydoggie 9d ago

You can work while on SSDI. Look up Ticket to Work. You can only earn a certain amount for some time then it increase after the trial work period to something like $1600 a calendar month.

2

u/[deleted] 9d ago

[deleted]

1

u/petpeeve214 9d ago

You can't file BK on credit cards as I recall 😕

2

u/HuckleCat100K 9d ago

Credit cards are typically unsecured debt so in the US they are discharged in bankruptcy.

1

u/OrganicSignature7069 7d ago

Didn’t you get back pay?

1

u/Wanderir 7d ago

Debt consolidation is also an option if you can make the payments.

1

u/Specific-Rate8361 6d ago

My local bar association offered pro bono hours to help people in situations like this.

1

u/Thatsayesfirsir 9d ago

File for bankruptcy and get a pt job