I Heard if I Make Token Payments I Can’t Be Sued. Is That True? – Oliver


Dear Steve,

I started a collision repair business in 2011 and it started off well but it started dying out slowly but surly, the area kept getting worse and worse not to mention my rent was $2500 per month not including all of my other bills.

So the scary part came when I had to make the decision to close down shop and when I did that I was left with credit card debt that I had from the shop amounting in around $30K (full amount).

I currently have 5-6 credit cards with either collection agencies or debt collectors trying to make decent settlements but I cant afford them at this time, I got an attorney to see if bankruptcy would be a good option for me but I would lose too much I already own and have built I don’t want that to happen so I want to pay off all of the debt I owe but I’m just not in that financial situation at this point in time so we talked about my attorney contacting the credit collectors and try to get them to lower the balances and allow me to make some kind of payments but he’s kind of dragging his feet because I haven’t paid him the $2,000 to start the process and also he says that after January would be a better time to negotiate the balances because most companies have written off this bad debt for tax purposes and they would be more likely to settle for a better offer next year 2016 …. so my question to you sir is below

I was told by a friend that even if you make a $10 Dollar payment per moth you cannot get sued because you are making some kind of payment?? How true is this really? My worry is getting sued and having a judgment placed on my pay check, I do not want that to happen, I don’t care about my credit right now, I’m not buying anything anytime soon all I want to do is avoid getting sued please if you can advise me on what to do for now I would really appreciate it I’m in the USA/MI I can barely afford my bills for food and shelter at this time but I’m trying my best to get through it all, I have about $150 per month to play with between all the credit cards if I was going to make any payments. BTW I know for a fact I can settle all the cards right now for no more that $10K I’m just stuck right now with low funds so please help me. Thank you so much in advance.

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Dear Oliver,

Thank you for writing me.

Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.

It’s not the first time I’ve heard the minimum payment rumor from someone. Let me be as clear as humanly possible, it is not true a marginal payment will do any good at all.

Creditors move by policies and procedures. When your account continues to go delinquent and you trigger the next action, nobody will give a damn that you made a token payment. Please tell your friend, in the kindest way possible, they are WRONG.

The quickest and least expensive way out of debt is to seek the legal protection and tax-free fresh start through bankruptcy.

If you have assets that are holding you back from filing bankruptcy, you should sell them to raise the money to settle your debt. But settle it in writing. Creditors have been know to get amnesia later on when there is no written agreement.

I would seek the advice from a second bankruptcy attorney. Nobody will give you grief from getting a second opinion.

The goal here is to wrap up the unfortunate past so you can begin to look forward and rebuild your life.

Damon Day - Pro Debt Coach

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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