Legal Question in Credit and Debt Law in Michigan
what to do if a collections agency won't accept the amount I can afford to pay m
Currently we have a total of almost $3,000.00 in outstanding medical bills with 10 different proviers. Due to financial problems (work being slow so due to type of work done no money coming in if work wasn't there) over the past few months we have not been able to pay them and plus were behind on our mortgage and credit line. Well one hospital turned it over to a collection agency and the collection agency wants $100.00 a month and for it to be automatically taken out of our checking account. We can't afford $100.00 a month since we have other bills to pay as well plus 2 bills to the IRS and STate for taxes owed. The collections agency will not accept $25.00 a month which is what we can afford to pay right now can they take us to court since they refuse to accept what we can afford?
2 Answers from Attorneys
Re: what to do if a collections agency won't accept the amount I can afford to p
No, the collection agency cannot sue you and cannot force you to agree to any kind of repayment arrangement. However, the creditor can sue you if they turn it over to an attorney or law firm licensed in Michigan (most out of state law firms trying to collect a debt are just debt collectors). If the collection agency has threatened you in any way, they may have violated the Fair Debt Collection Practices Act which may entitle you to money damages.
In addition, based on some of the information you have provided, you should talk to an attorney about bankruptcy. My firm can assist you with these issues. If you would like more information, please call (248) 679-1552 or (877) 349-5421.
Re: what to do if a collections agency won't accept the amount I can afford to p
Though it's bad for your credit, you can stop all of that by simply filing a Chapter 7 or Chapter 13 bankruptcy (sounds like a 7 with your limited budget, however). Feel free to call me - 1-888-31-SWEENEY and I'll give you more info.
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