Waiting for Disability, Ran Up a Bunch of Debt and Getting Sued. – Tamara

“Dear Steve,

My husband is currently going through the process of filing for permanent disability. It has been an almost two year fight but the end is near. I have been the sole provider of the household during that two year period and as a result we had to go into survival mode and only pay our mortgage, utilities, food and medical expenses. We haven’t paid any of our credit card debt, not because we don’t want to but because we can’t. Now I am being contacted by law firms and two of them have filed small claims suits. I have worked out a minimal payment arrangement of $25 per month with one but they still want me to sign court paperwork which appears will result in a Judgment in their favor. The word “Judgment” scares me and I really don’t want to sign these papers. If I appear in court and show the communication from the debt collector that payment arrangements have been made prior to the trial date, is there any way I can avoid signing these papers?


Dear Tamara,

It sounds like what they are asking you to sign is an agreement that if you miss a payment they can go to court and get an automatic judgment against you. Sometimes this is called a stipulation judgment.

But how much debt do you have? I’m wondering if a nominal payment agreement is going to work at all if you have more than a few thousand dollars worth of debt.

Just to be in the safe side here I’d suggest you click here to find a local bankruptcy attorney to talk to. Bankruptcy may be the best solution since it would stop all suits and let you get a legal fresh start.

At the very least it’s worth evaluating.

Please post your responses and follow-up messages to me on this in the comments section below.

Damon Day - Pro Debt Coach

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