You can only file if you're properly reported income and paid taxes. In my state it goes back I think 18 months. Whatever your average pay was for the last 18 months determines what percentage of the max you get.Originally Posted by Owen
Self employed people don't generally have Unemployment to fall back on if they didn't make much income. It's pretty much flying without a net.
Ya, it appears it's the last 5 quarters in Florida. It's also intended as a stop gap for people between jobs. It's not really intended for self employed people. You must have been actively looking for a job. I don't comply for several reasons in any case. Someone recommended disability which may work for me. I need to investigate that one further.
I am sorry to hear of your financial issues. Many of us have been there including myself. It is a risk of entrepreneurship.
What I have to say is NOT legal advice. Some may find it unethical. However, when it comes down to you or them sometimes you have to play hardball. They have no sympathy so neither should you.
As Harold mentioned that sounds like a collection agency that bought the debt from the original creditor. They pay pennies on the dollar and hope to collect from you, that’s how they make money. In the mean time the original creditor has already written off the debt. That’s just part of the cost of business for them. I’m saying this because you have to take the attitude that you have no personal obligation to the purchaser of the debt.
You probably should avoid bankruptcy, especially if that is the only debt outstanding (other than mortgage).
Again, this is NOT legal advice, but a strategy that has been used successfully in some cases. It’s a little technical legally. Generally, when collection agencies “buy” debt it is done in mass. That is they buy an entire portfolio of bad debt. Usually the information is transferred digitally, hundreds at a time.
When they do that they typically DO NOT transfer the actual paper documents that would have your signature on the agreement.
This is meaningful because in most states the creditor needs to present to the court the original executed agreement. There is a very good chance the new collection agency DOES NOT have those documents.
The strategy for collection agencies is that they know most people do not respond to court dates. When the debtor doesn’t show up it is almost automatic that they will get a judgment against you. With a judgement they can attach bank accounts, garnish wages, etc.
What you must do is absolutely show up at every court date! Do NOT fail to do this.
When you go DO NOT admit to the debt. Insist that they present the original agreement. Don’t be intimidated by the opposing attorney or the judge. They will probably have a pile of old statements but they will likely NOT have the original signed agreement. Just insist on the original agreement. The court will usually have no choice but to dismiss. The attorney and the judge will probably try to get you to admit to the debt, just don’t, insist on the original agreement.
If they do have the original agreement , sometimes they may, then they will win…then just try to negotiate some form of payout for a lesser amount. Remember, they paid a fraction of the original amount so you should be able to settle for a lessor amount, probably as little as 50% or less.
In any case just make sure to appear at the court dates. You will at least buy some time until you receive your other money.
I know many may find this to be unethical. However, sometimes when you’re down you have to fight. They have absolutely no concern or sympathy for your situation. The original creditor took a risk and lost, the collection agencies are vultures that prey on those who are in unfortunate situations.
I am saying all this because I assume you can not afford an attorney to do this for you. Obviously, if you can afford an attorney that is the better way.
Thanks Paul. That is very helpful information. While I really can't afford an attorney, that may be my only option as this is a small portion of my actual dept which is in the 100k plus range. My credit is shot and I'm in my 60's now, so I'm not as concerned about my credit being destroyed by a bankruptcy as when I was younger.
Thanks again.
Bill, If your debt is as high as 100K then bankruptcy may be the answer. It sounds like the $ 8K is the first of the law suits. You can try what I said to at least buy some time. Just DO NOT fail to show at court. You automatically lose by not appearing. That is what they expect. They will be somewhat surprised when you show up. 90% don't show up and they get automatic judgments. Again, make them "Prove" the debt with an original signed agreement. It may be they will have it, but they usually don't.
I've heard of other legal defenses such as "you did not ever have an agreement with the collection agency". I don't know how valid that is and may be dependent on state laws. Also, be aware of statute of limitations laws in your state. After a certain amount of years they can't file. Usually this starts from your last payment SO by trying to make little payments it extends their time to file. Although little payments can buy time for you.
A good friend is an asset protection attorney so I know some of these strategies. Remember major multi million dollar businesses fail and file bankruptcy all the time. It is part of the fabric of doing business for both the creditor and the debtor. Believe me, they do that without an ounce of remorse so you can have the same attitude. You just have to protect yourself as best you can.
Thanks again Paul. I have a meeting with an attorney scheduled for next week.
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