Debtor hell

[cspeterlin]

What is the name of your state (only U.S. law)? Illinois

I am being sued by an assisted living facility for approximately $25,0000 for my stay there. I suffered a catastrophic accident in Feb. 2009 resulting in major surgery. My insurance ran it's course and there was no way for me to pay. I was kicked out. I am basically a pauper. I have no way to have a lawyer help me. I receive food stamps so that I may eat and family has allowed me to stay in their home for a short time. My case with disability and medicaid is pending. I have nothing. What do I do? What will happen?

 

[dfromnyli]

As a practical matter, since you have no money, and no assets, there is nothing for the plaintiff assisted-living facility to obtain from you. If you do not respond to the suit, then they will at some point be awarded a default Judgment.

this is correct!

Their next step is to attempt to collect on that Judgment. Typically you would be called in for a post-judgment debtor's examination.

This COULD happen but is by no means typical at all. These are actually pretty rare, you normally see these is instances where the plaintiff expressly knows that a defendant has assets but has not been able to locate them.

Debtor's prisons were abolished with the American Revolution.

LOL wat? no they weren't! They were not abolished until close to a full 100 years later then the AmRev. Also you can still go to jail for failing to pay child support and failing to show up for a debtors exam... can that be considered going to jail for debt? Probably not they call it contempt of court but it really is going to jail because you have not paid bills.

 

[annajosie]

I have seen judgement creditors go for a debtor exam even when the chances are slim to nothing that they can attach any assets. I guess they are just fishing and hoping to find something.

In the case of the OP, there seems to be no chance of them getting a thing.

While it is true that you can be put in jail for not paying child support, you do not go to jail for not paying a medical bill, credit card bill or just about any bill.

It is also true that you can be held in contempt for not showing up for a debtor's exam, but that is not the same as going to jail for a debt.

I also wish the OP well. It seems to be a horrible situation.

 

[commentator]

I'll bet the assisted living people are thinking there may be an insurance settlement or a lawsuit somewhere down the line due to this "catastrophic accident" that the person suffered. They're assuming that their day to be paid will come someday if they wait and get in their claim. After all, if you watch daytime television, you are led to believe that people who get injured are really lucky, because now they can call the tv lawyer and hit paydirt!!

 

[dfromnyli]

In 1833 the United States reduced the practice of imprisonment for debts at the federal level. Most states followed suit. It is still possible, however, to be incarcerated for debt, but only in those circumstances in which the court finds that the debtor actually possesses the money or means available to pay the debt, however, in the case of child support, if you are unable to pay the amount set by child support enforcement you will be incarcerated even though you may not have the actual means to pay it through no fault of your own.




Just for clarification on debtors prison.