The short answer is it all depends on your overall situation. Exempt Income, are funds that cannot be reached by creditors because they are on a legally exempted list. These include but are not limited to, Disability benefits, Social Security Income, and most pensions (the list is much longer). Many people feel that because creditors cannot attach these funds even if they go to court and get a judgment, that there is no reason to settle or otherwise deal with these debts.
I say, that decision really depends on your overall situation, and future plans. If you are retired and truly believe that you will not need to use credit ever again, and if you are sure of this position, and further have no sense of any moral obligation to bother paying back money you have actually used, then I guess you might decide not to bother checking out a debt settlement program. However, if you are in this group, one thing you should know is that because you are in the position you are in, you are also in the ideal position to settle your debts for very little money, especially if you have no real assets to speak of.
If you are in a group that currently has income that is exempt, but would like to maintain good credit even just so you have it available when and if you need it, then you want to seriously consider a debt settlement program. The professionals who negotiate these settlements will be able to get you extremely low settlements, and once the debts are settled your credit report will read that the debt has been settled as agreed, and you can begin to join the world of wise credit users. Not to mention that as an important side note, you will actually feel much better as a person, because you did not simply ignore your obligation.
If you are fairly young and in this situation, the day may come when your income goes beyond exempt funds. At that point you will be happy that you actually heeded my advice and took care of business when you were in the best possible position to do so.
If you would like to speak about your debt issues, feel absolutely free to contact me. The talking is always free.
Yours Truly
Steven Ciantro
Consumer Advocate
American Debt Enders
Certified Credit Counselor
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