Quick Answer: You cannot be arrested for debt while on disability, but failing to respond to a $4,000 lawsuit will result in a default judgment. Since SSDI income is protected and the debtor has minimal assets, contacting the nonprofit HELPS organization for guidance is recommended over bankruptcy.
Question:
Dear Steve,
I’m on disability and being sued for $4,000; I have no other source of income.
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Will I be arrested if I don’t show up in court?
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I own a home, but it’s in my husband’s name. I do own an old Jeep. I have 216.00$ in my savings account. And bill money in my checking from SSDI.
I don’t know what to do.
Will I be arrested?
Susan
Answer:
Dear Susan,
It is a very frightening experience to be sued over an old debt when you have little to your name.
You will not be arrested.
However, if you don’t respond to the lawsuit, you will lose by default.
But that would not be the end of the world. It sounds as if you have little for the creditors to go after and no assets to speak of.
I would strongly suggest that you immediately contact the good people at the non-profit law firm HELPS. They can provide you with support, guidance, and advice if the creditor attempts to collect on the judgment they will get after losing the case.
An alternative is to consider filing bankruptcy, but from what you’ve shared, while that would potentially give you some peace of mind that the debt was legally extinguished, it may be too big of a hammer for this situation.
Before You Sign Anything: Run any debt relief contract through the free Contract Decoder to spot hidden fees and unfair terms. Check the company’s complaint history with the Scam-O-Meter.
Compare Your Real Options: Most debt relief companies won’t tell you about all your options — especially the ones they can’t profit from. Credit counseling has a 21-27% completion rate. Settlement resolves about 1% of enrolled debts fully. Bankruptcy has a 95% discharge rate — and protects your retirement. Take the Find Your Path quiz for a recommendation based on your actual numbers.
in other words, she being indigent on SS has no assets able for seizure. otherwise known as a judgement free person. no worries, be happy!
Well she will still get a judgment when she loses, and they will attempt to collect on it, and the stress of keeping them at bay can be more than people want to deal with, but there is a way to do it.
Question asked.
Don’t worry. This will turn out fine.