Lost my business and my wife lost her job.

Let me welcome you to the forum. Since you have joined you will be contacted by a debt counsler. We will try to help the the best way we can.

a collection agency can sue you, or reccomend to the client (origional creditor) to sue you but do not be afraid, that will not be their first step. First you should contact every one of your creditors and talk to them about your situation, find out what your options are before you get worried.

once they tell you what you are up against, then you will know how serious it is. It might not be so bad, but you will make it worse by neglecting it. the last thing you want is for them to call you and scare you

Welcome to the forum, John. If you register with this forum, a debt counselor will contact you for a free consultation. They will discuss your situation and the options available to get you back on track.

This forum is a wonderful source of information and advice, and we'd love to have you join us.

Thank you.
I did talk to 2 of the creditors and 1 collection agency.
One of them want to break the total into 3 payments of $700 each month. The others want me to pay $4000.
I can't even pay $50 at this moment.

Getting into a debt consolidation or debt settlement program would be a good option to help you get things under control. A debt counselor can discuss each program and help you decide which is best for your situation.

In the meantime, you can send a debt validation letter to any collection agencies you are dealing with. There is a template here....
http://www.debtconsolidationcare.com/letters/sample6.html

You can personalize it and mail it to the collection agency via certified mail/return receipt requested. Also state in the letter that you request the collection agency to cease all telephone communications to you at your home and place of employment. This will at least give you a bit of peace while you work to get things sorted out.

Johnla,
Welcome! Good to see you here. First, you need to pay the important things, like rent, lights, food, etc. Anything left over can go to paying down your debt. There are some other things you can check out. First: you said your wife had a toxic gas leak at her office and became disabled as a result. Have you looked into her filing a Workman's Comp claim? The reason this is important is because Workman's Comp is what we call protected time.
This means that the company HAS to hold your wife's job for her--and if for some reason, the job is eliminated, then they have to offer a similar job. Normally, they have to hold it for 6 months, but it varies from state to state.
You can also check with your credit card co's to see if they offer programs for people out of work. It's worth a shot! Also, I echo what other people have already said: DO NOT ignore the collection calls! I know they're a pain, but they're not going to stop. Trust me, I know. :(
You can get through this--but let us know how you're doing, OK?

John Welcome to the forums. Has your wife tried to get disability benefits form Social Security yet? It takes a while but is worth a shot. Also contact the credit card companies they do have hardship cases and sometimes will allow you to pay 3 percent on outstanding balance. Give it a try. Keep posting and let us know how you are doing. KYSIDE38

Actually, the wife probably has a claim against the insurance company, the company she worked for and the gas company. She should contact a personal injury attorney asap as she could have long term complications that could make a difference down the line with respect to her future ability to work. Personal Injury law firms do not ask you to pay. They work on contingency and take a percentage of whatever money settlement there is. Because they don't take any money up front they work hard to get you the highest settlement money available. They also find a way to get supplemental income. I'm not sue happy, but being a paralegal, it sounds like you have a real claim against the company, the insurance carrier and possibly the gas company. Shop around for a P.I. firm that will give you the best results. Talk to people you might know who can give you a referral.

What get additional information. I live in Mexico. Here is my ????????????????. There reference there is on You.

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Your wife should set up a claim against her POE b/c she is unable to work due to their faultiness on the worksite. A debt consolidation agency would be your best bet b/c they can contact the lenders and set up arrangements on a monthly basis that will suit your pockets. But you do need to be aware that not all ca work w/ ebt consolidation companies.

Thank you for all the responses and advice.

I did file for Workman's Comp claim and she should be getting some money from them.
We haven't tried disability from Social security. I will look into that.

I don't think I can do a debt consolidation since I would have to pay them a monthly fee, if nothing up front. Which I can't afford.

I will keep you posted.
Thanks again
John

John, get in touch with a Personal Injury firm. Good possibility of an insurance settlement from the employer's insurance company which could make a good part of the financial nightmare go away.