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  1. #1

    Default Credit Card Debt Collection if Your Sole Income is from Social Security

    My question involves collection proceedings in the State of: Indiana


    Is it true that if your only source of income is Social Security or Social Security Disability that a credit card company cannot collect on a debt if you do not have the money to pay it off? Even if you own your own home?

    Thanks.

    What about hospital bills?

    I recently went on Medicare and SS Disability. My out-of-pocket drug costs are more than I receive on SS Disability.

  2. #2
    Join Date
    Oct 2016
    Posts
    2,754

    Default Re: Credit Card Debt

    Not exactly, Social Security payments cannot be garnished (with very limited exceptions).

  3. #3
    Join Date
    Mar 2013
    Posts
    16,754

    Default Re: Credit Card Debt

    Creditors would have to sue you and get a judgment. With a judgment they would have some pretty strong collection abilities except for statutory exemptions from judgment.

    Social Security benefits are exempt from judgment for consumer debt.

    Unfortunately, Indiana's home exemption is only $19,300 (plus an optional $10,250 that you can apply to your home or to other personal property, like a car). A judgment can become a lien on your home so you would have to pay the judgment if you sold or refinanced.

  4. #4

    Default Re: Credit Card Debt

    Home exemption? The debt is only about $6000 for credit cards.

    Hospital about another $4000.

  5. #5
    Join Date
    Mar 2013
    Posts
    16,754

    Default Re: Credit Card Debt

    Your creditors don't have the power to collect from you if you don't pay them voluntarily, unless they sue you.

    If any one of them sue you and get a judgment, in most states the judgment can be recorded as a lien against your house. If that occurs you ever go to sell your house or refinance the title company will pay off the debt from the proceeds. If your house is paid off and you have a lot more equity in it than the exemption, it could be possible for a creditor to force the sale of the house to pay the debt.

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