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LIVING WITH HIV: A Legal GuidePART II RIGHTS & BENEFITS Federal, state and local laws broadly prohibit discrimination against the disabled in employment, housing and public accommodations. AIDS, asymptomatic HIV-infection and even the perception that one has HIV are disabilities for the purposes of these anti-discrimination statutes. However, these are issues currently under review by the Supreme Court. Additionally, people "disabled" by HIV/AIDS may be entitled to assistance and services under numerous federal, state, local and private programs. However, the standard of disability used in determining eligibility for these benefit programs is often much stricter than that in the anti-discrimination laws. Usually, you must have a physical or medical impairment, not just HIV-infection. Often, you must also show a financial need. This section covers the rights of and the benefits available to people with HIV/AIDS in several different areas. (Note - Health care providers and members of the Armed Services face special problems with regard to employment. These are discussed in separate sections of this booklet.) All private employers with fifteen or more employees (except certain private clubs), all private employers who receive government funds, and all state and municipal employers are covered by state and/or federal anti-discrimination statutes. Labor unions and employment agencies are also covered by these statutes. As long as your condition does not interfere with your ability to perform your "essential job functions," these laws protect you against discrimination in any of the terms or conditions of employment. Even if your condition does interfere with your ability to do your job, the law may require your employer to make "reasonable" accommodations within your job environment or duties if these will enable you to do the job. This might mean adjusting your hours or work assignments if these adjustments do not "unduly burden" the employer. You may also have the right to take a certain amount of time off from work for medical care under the Family and Medical Leave Act. (Your employer can, of course, let you go if you become too sick to do your job, but even then it must offer you the same benefits it offers other medically discharged employees.) The anti-discrimination laws mean that an employer may not discriminate against you even if co-employees refuse to work with you or if customers refuse to patronize the business because of your condition. If you are harassed by your co-employees and your employer does not attempt to stop it, you may have the basis for a lawsuit against the employer. Additionally, the federal Employment Retire-ment Income Security Act (ERISA) prohibits employers from discharging you to prevent you from claiming employee benefits such as health care or disability pay. However, there are some real and practical limits to these laws. As mentioned above, not all employers are covered. If an employer is covered, it can often find a pretext for firing you other than HIV/AIDS. Your employer may feel it has no option but to ignore the law if, for example, you are a cook and no one will patronize the restaurant because of your HIV status. Finally, the law is not self-enforcing: you will need to bring a lawsuit, you will need to convince a judge or jury that you have been discriminated against and, even if you succeed, you will probably have to wait several years before you are compensated. Thus, as spelled out in the first section of this booklet, your best protection against discrimination is maintaining the confidentiality of your HIV status. While keeping your HIV infection a secret is your best defense against discrimination while you are asymptomatic, you will have to tell your employer something if you need to take time off for illness or treatment. At some point you may need to inform your employer of your condition to qualify for sick leave or disability pay, in order to have your medical expenses covered, or to qualify for protection under the anti-discrimination statutes. You should consult with an attorney in deciding how much to reveal to your employer and when. If you do encounter discrimination, you should seek legal help. In order to bring a lawsuit based on federal anti-discrimination laws, you may file a complaint with the Louisiana Human Rights Commission and then with the federal Equal Employment Opportunity Commission (E.E.O.C.) within 90 days. Some circuits have held that filing a complaint wi5th the Louisiana Human Rights Commission is no longer a preliminary step to filing a complaint with the E.E.O.C.. If you choose to file a complaint with the Louisiana Human Rights commission, you must do so in a timely fashion or your claim will lapse. The time limit for filing a complaint with the Louisiana Commission on Human Rights is within 180 days of the action upon which the complaint is based. The time limit for filing with the E.E.O.C. is within 300 days of the action upon wi\hich the compalint is based. These agencies will investigate your complaint, attempt to resolve the dispute, and the E.E.O.C. may take legal action on your behalf. Although you do not need an attorney at this stage, one may be able to speed up the process and obtain a more favorable result. If the E.E.O.C. cannot achieve a settlement and does not sue on your behalf, it will issue you a "right to sue letter." At this point you will need an attorney to help you file a lawsuit within 90 days. You need not file an administrative complaint prior to bringing a lawsuit based on state anti-discrimination law, although the Louisiana Human Rights Commission will investigate and attempt to resolve violations of state law as well. Regardless of whether you file a complaint based on state law, you must file a complaint to preserve your rights under federal law. You may call or write these organizations at the following addresses:
E.E.O.C.
Louisiana Human Rights Commission Additionally, if you are covered by a collective bargaining agreement, whether or not you are a union member, you should file a grievance with the union. Employment-Related Medical Examinations Employers covered by the Americans with Disabilities Act have no right to ask whether you have any disability until after they have made a conditional offer of employment. Thus, apart from screening for illicit drugs, you should not have to undergo any medical exam as part of your job application process. If you have to take a pre-employment drug test and are asked if you are on any prescription medication, give the full chemical name of any HIV-related drugs, not a commonly recognized name such as AZT. After you have been offered employment, but before you begin working, you may have to submit to a medical exam - but only if it is required of all other incoming employees. The ADA places no restrictions on these post-offer, pre-employment medical exams. After you have begun working, your employer can require medical information or exams only to assess your ability to do your job. The doctor and other medical personnel performing these exams work for your employer and will report the results of the exam to your employer without your permission. However, asking about or testing for HIV is rarely a part of these exams because few employers have any legitimate need for this information. If an employer demands an HIV test, takes action against you for refusing an HIV test or takes action against you after learning the results of an HIV test, you should immediately contact an attorney. An employer may also want a report from your private, treating physician if you have been out sick. If you are planning on returning to work, speak to your doctor about omitting any mention of HIV or AIDS from the report. Your doctor can simply report the particular illness you were suffering from, without reporting that it is secondary to HIV-infection. If the particular illness is closely associated with HIV/AIDS, your doctor can usually describe the illness more generally. For example, the doctor can state you had pneumonia rather than PCP. If your employer is involved in processing your health insurance claims you should ask your doctor to take similar measures on these forms as well. As stated above, however, there may come a time when you will need to provide your employer with more information. If your illness will permanently prevent you from returning to work, it is usually wise to let your employer know that you have HIV/AIDS. At that point, you should no longer have to worry about job discrimination and informing your employer of your condition may protect your rights to disability income and health insurance. Again, however, consult with an attorney before making this disclosure. Virtually all health care providers (physicians, nurses, hospitals, nursing homes, ambulance services, etc.) are now covered by laws prohibiting discrimination against people with HIV/AIDS. These laws prohibit a health care provider from refusing you treatment or services, as well as from treating you differently or charging you more, based solely on your HIV-status. There are two limitations on this protection. First, a health care provider does not have to treat you if your condition requires specialized skills or knowledge that he or she does not have. In this case, the provider need only refer you to an appropriate specialist. Secondly, a health care provider may not have to treat you if there is a significant risk that he or she will become infected. Many health care providers, especially dentists and osteopathic surgeons, continue to refuse to treat people with HIV, citing the risk of transmission. On a related point, some health care providers insist on an HIV test before they will treat anyone they suspect might have HIV. However, despite widespread conjecture that transmission may be possible in a limited number of surgical procedures, there is no evidence that any medical procedure, when performed with adherence to universal precautions, poses any risk of HIV-transmission. Moreover, health care providers are obliged to follow the same infection control procedures regardless of a patient's HIV-status. For these reasons, the courts should find that a health care provider has no right to refuse treatment or to insist on an HIV test. The few courts cases that have addressed these issues have so found. However, it will probably be several years before there is a definitive answer to these questions. Until then, you may still encounter health care providers who will refuse to treat you or who insist on testing. To minimize the risk of such discrimination, you can refrain from informing a health care provider of your HIV-infection or that you are a member of a "high risk" group when this information is unrelated to the treatment you are seeking. For example, you need not tell your dentist that you are HIV-positive or gay when you are seeking a routine check-up or cleaning. However, you should always determine whether your health care providers are following infection control procedures known as "universal precautions." Such procedures include wearing gloves and a mask and sterilizing equipment between patients. If a health care provider does not follow these procedures, take your business elsewhere. Various agencies are charged with investigating and prosecuting violations of the anti-discrimination laws. If you have been denied medical services or otherwise discriminated against by a health care provider report it to:
Public Access Section
Office for Civil Rights
Louisiana Human Rights Commission If your health worsens because of such discrimination, you may have the basis for a lawsuit for money damages and you should consult a lawyer. Treatment for Those Unable to Pay Treatment for HIV can be extremely expensive. For the most part, private physicians and hospitals are under no obligation to treat you if you cannot pay. The only way to guarantee access to medical care is to be extremely wealthy or to have adequate health insurance. (See the Insurance Section of this booklet.) There are some limited circumstances under which a private doctor or hospital must provide you with medical care, regardless of your ability to pay. Emergency Care - If you need emergency medical care, hospitals which have emergency rooms or which customarily provide emergency services may not refuse to treat you because of your inability to pay. A hospital can transfer you to another facility but only if the transfer will not worsen your condi-tion and if the hospital to which you will be sent agrees in advance to accept you. Long-term Care - Hospitals that receive federal grants under the Hill-Burton Act must provide a certain quantity of free services to people who cannot afford to pay. Services avail-able must be posted in the hospital's admission room. If you are in need of the specific services provided at no cost, you may apply for free care. The hospital must decide on your eligibility within two days. For more information on hospitals in Louisiana that are obligated to provide free services, call 1-800-638-0742. Physicians - A physician who has begun treating you for a particular illness cannot discontinue treatment without giving you advance notice. If you are critically ill, your doctor must make provisions for your future care, even if you cannot afford to pay for these services. A physician or dentist may specifically limit the types of services performed, but only after giving you notice or by special agree-ment. If your doctor does so, he or she is not obligated to perform services not so designated. There are, however, several institutions throughout Louisiana which provide treatment for HIV to those unable to afford health care. Many of these have clinics specifically for HIV disease. (Most of the institutions listed below are state hospitals, ) The Medical Center of Louisiana, a.k.a. the Charity Hospital system (In-patient and out-patient HIV programs, HIV prescription medications. Fees are on a sliding scale. Services are free for households with income up to 300% of the federal poverty level. If your household income is over this amount, you can be charged up to 20% of the excess. Thus, if you are a single person household and your annual income is $15,000 or less, there is no charge. Specific locations throughout the state are listed below.) New Orleans: Medical Center of Louisiana/Charity Hospital, HIV Outpatient Program (504) 568-5304 Baton Rouge: Earl K. Long Med. Center (504) 358-3927 Shreveport: L.S.U. Medical Center, Outpatient Clinic (318) 676-5060 Monroe: E.A. Conway Hospital AIDS Coordinator (318) 330-7159 Lafayette: University Medical Center (318) 261-6785 Alexandria: Huey P. Long Hospital (318) 473-6311 Lake Charles: Moss Regional Hospital Comprehensive Care Clinic (318) 475-8100 Houma: Southern Louisiana Medical Center (504) 873- 1106 (504) 873-1112 AIDS Coordinator (504) 873-2451 Bogalousa: Washington/St. Tammany Medical Center (504) 735-1322 Independence: Lallie Kemp Medical Center (504)878-1944 (504) 878-1389 AIDS Drug Assistance Program (ADAP). Financial assistance with HIV-related medications for people without insurance whose household income is at or below 200% of the federal poverty level. Application should be made to the HIV Program Office (504) 568-7474. Veterans Affairs Medical Center in New Orleans In-patient and out-patient HIV care for veterans. (504) 568-0811 University Hospice Part of the state hospital system. Home hospice care in the New Orleans area. (504) 588-3138 AIDS Clinical Trials Unit Free medications and care for people taking part in experimental drug studies. (504) 584-3605 Louisiana Community AIDS Research Program Free medications and care for people taking part in experimental drug studies. (504) 584-1971 Both the federal and the Louisiana fair housing laws prohibit discrimination based on disability in the rental and purchase of housing. Federal Law does not apply, however, to the rental of rooms or apartments in owner-occupied buildings with four or fewer units. The Louisiana law does not contain this exception. If you are denied housing because you have HIV, you may either file a complaint with the Department of Housing and Urban Development (HUD) or you may file a lawsuit. The HUD field offices for Louisiana are located at:
If your income falls within a range established by federal guidelines, you may qualify for rental assistance under Section 8 of the Fair Housing Act. In-dividuals receiving Supplemental Security Income or disability payments qualify. Under this program, up to 70% of your rent could be paid through a rent subsidy program. Unfortunately, the waiting period is often long. Communities with a high incidence of AIDS are eligible for federal funds under the AIDS Housing Opportunities Act (AHOA). The locality is given discretion in using these funds for shelters, permanent housing or rental assistance to people with AIDS. Even if your community is not receiving AHOA funds, it may have housing or rental assistance available for people with HIV/AIDS. Contact your local AIDS service organization or social worker to see what is available in your area. Public housing is another option. To apply in New Orleans, you select a particular development and make application at that development on Tuesdays or Thursdays between 9:00 a.m. and 3:00 p.m. You must be able to prove how much income you have. Verification can consist of tax forms or evidence of employment, unemployment compensation, or child support. You must also take rent and utility receipts for the previous two months. If you are on food stamps, take the food stamp printout. You will be asked about the family relationships of those who will live in the apartment. You must have a birth certificate and social security card for each of those persons and a picture ID for each one over 18 years old. The waiting period for public housing varies. The rent is based on income and averages $50.00 per month. You have no right to remain in your apartment if you cannot pay your rent. Although you can only be legally evicted through a formal eviction proceeding, the process moves very quickly and your landlord could have you removed from your apartment in as little as ten days from the date your rent was due. The process begins with the posting of "Notice to Vacate." If you have not vacated the apartment within five days of the posting of this notice, your landlord must then have you served with a summons to appear in court. The hearing will usually be three days after you receive the summons. If you have no legitimate defense to not having paid your rent (having no money is not a legitimate defense), the court will order you to vacate the apartment, usually within forty-eight hours. Some judges, though not many in Orleans Parish, may give you a few extra days if you have made some definite arrangements to move elsewhere. If you are not out at the end of the time allowed, the sheriff will remove you. About the only way to stop an eviction for non-payment is to pay the rent before the hearing. You may also be evicted by the same procedure if you breach certain other provisions of your lease. If you have no lease or have a month-to-month lease, your landlord may evict you for no reason whatsoever. However, in this case the landlord must give you written notice to vacate at least ten days before the end of the month (or monthly rental period). If you are not then out at the end of the month, he or she must have you served with a summons and follow the other steps listed above. If your landlord's real motivation in evicting you is your HIV-status and if you can convince the court of this, the judge should allow you to stay. However, motivation is very difficult to prove so you may have a hard time winning on this issue. The federal government, through the Social Security Administration, has two programs that provide income to people who are disabled: Social Security Disability Insurance Benefits and Supplemental Security Income. Both use the same standard of disability: The inability to engage in any substantial, gainful activity due to a medically deter-minable physical or mental condition that is expected to last for at least twelve months or result in death. Any of several of the opportunistic infections associated with AIDS, for example, pneumocystis carinii pneumonia (PCP) or toxoplasmosis, will automatically lead to a determination that you are disabled. Any of several other infections, if coupled with a doctor's statement that you are impaired in certain functions essential to daily living and to working, will also lead to a determination of disability. For people who have symptomatic HIV-disease, but not one of the conditions listed in the Social Security guidelines, a determination of disability is made on a case-by-case basis. Although a determination that you are not disabled can be appealed, appeals will take months. Therefore it is very important to have your medical condition fully documented and to make sure that all your medical evidence is submitted when you first apply. Social Security Disability Insurance (SSD) To be eligible for SSD, you must be (1) disabled, as defined above, and (2) have been paying the "FICA" payroll deduction tax for a certain length of time, usually at least five out of the last ten years. The amount of your Social Security Disability benefit will depend on your past earnings and on how long you have been paying into the system. The typical recipient gets about fifty-percent of what he or she had been earning. If you have a dependent spouse, child, or parent, they may be eligible for additional, "dependants'" benefits while you are living and "survivors'" benefits if you pass away. There is a five-month waiting period for SSD. That is, you are not entitled to benefits for the first five months after the onset of your disability. Your local AIDS service organization may offer assistance in applying for Social Security. If not, you should take the following to the local Social Security office:
An individual cannot receive both Social Security Disability benefits and unemployment benefits, because to receive unemploy-ment, you must certify you can work. Supplemental Security Income (SSI) SSI is available to individuals who are disabled and who meet a financial need test. To qualify, your income must be under $478.00 a month and your assets can be no more than $2000 (not including a house and a car). The maximum SSI benefit is currently $458 a month, but is reduced by any income you are receiving from other sources (including non-monetary support such as room and board). The first $20.00 of the other income is ignored when calculating the SSI benefit. This means your total income from all sources, including SSI, can not exceed $478.00 per month. The income and asset guidelines are somewhat higher if you are married. However, the Social Security Administration will include the income and assets of your spouse in determining your eligibility. Thus it is usually impossible to qualify for SSI if your spouse is working. SSI is available to those who have not paid into Social Security or who have not paid enough into the system. There is no waiting period for benefits. When awarded, payments are retroac-tive to the date of application or date of onset of disability, whichever is later. However, there are no dependent's or survivor's benefits for family members. Individuals who are in the five-month waiting period for SSD are eligible for benefits under SSI if they meet the income and asset guidelines. To apply for SSI, you will need the following:
Medicaid and Medicare are health insurance programs run by the federal government and may afford the option of private medical care. If you are disabled and receiving Social Security benefits, you may be eligible for one or the other of these programs. (See section on Social Security for information on Social Security eligibility requirements.) You may also qualify for Medicaid if your medical expenses are very high. Medicaid - If you receive SSI and do not have private health insurance, you will automatically be enrolled in the Medicaid insurance program at no cost to yourself. Medicaid insurance is accepted by most hospitals in Louisiana. Unfortunately, few of the private physicians specializing in HIV will accept a patient whose only insurance is Medicaid. Check with your local AIDS service organization or with a local doctor referral service to see if any HIV-specialists in your area accept Medicaid. Medicare - Medicare insurance is available to anyone who has been receiving Social Security Disability benefits for twenty-four months. It costs approximately $42.00 per month, though the premium may be paid for you if your income (single person household) is no more than $601 per month. The coverage is identical to the program for the elderly and is not need-based. You are eligible for the program twenty-nine months (i.e., five months waiting period to get SSD, two more years to get Medicare) after you become disabled. Medicare is accepted by nearly all physicians and hospitals. Health Insurance Continuation Program The State of Louisiana will pay your health insurance premiums, up to $500 a month (and an additional $50 per month for dental coverage), if you are disabled by HIV/AIDS and your household income is below 165% of the federal poverty level (about $1250 per month for a single person household.) Acceptance into the program is limited by the availability of funding. Application must be made through a case manager. If you do not have a case manager, contact your local AIDS service organization or the social work department at the hospital where you have been receiving treatment. Food stamps are a need-based program. For a single person household, your net income cannot be more than approximately $550 per month. The amount of food stamps which you receive will depend on your net income and the size of your household. Applications for food stamps are made to the Office of Family Security (the state welfare office) in the parish where you live. To apply, you will need:
There may also be organizations in your community that will help you with transportation, meals, and other special needs and daily tasks. Contact your local AIDS service organization to learn what assistance is available. DEALING WITH DEBTS AND BILL COLLECTORS Many people disabled by HIV/AIDS have trouble making ends meet. Payments from Social Security or even private disability insurance are often drastically less than what you had been earning. Your monthly bills, such as rent, utilities and food, continue to come in. You may now also have to pay your health insurance premiums, something that your employer had done while you were working. Medical expenses may be piling up. (Even with health insurance, you could be responsible for hundreds or thousands of dollars worth of "deductibles" and "co-payments.") Credit card and loan payments, which were manageable with your former salary, can be impossible if you are not working or are working only part time. This situation can become a nightmare: constant phone calls and letters from bill collectors threatening you with horrible consequences if you do not pay immediately. If you know your rights, however, you can manage this situation. Some bills can be safely ignored, and some others postponed. Bill collectors will usually back off, if you explain your situation and are firm with them. First, find out if any of your debts have disability insurance attached to them. When you obtained your credit card, mortgage, or other loan, you may also have purchased an insurance policy designed to make your payments in the event you became disabled. Check your loan documents to see if you have this coverage. Also check with your lender - it may have purchased such coverage on its own. Similarly, your health and life insurance may contain a "disability waiver," meaning you do not have to make premium payments while you are disabled. Again, check your policy. Before deciding which bills to pay and which to ignore, you need to know the consequences. The four types of debts listed below could have immediate, harmful consequences if you do not pay them. Court-ordered payments, such as alimony or child-support, must be paid on time or you could find yourself in jail for contempt of court. If you are unable to pay, do not simply ignore it. Ask the court to modify the payment order. A court will usually lower or eliminate your payments to meet your new financial condition. (Additionally, if you are on S.S.D., your children should be eligible for "dependants' benefits" which may entirely pay your support obligations. Check with your local Social Security office.) Ongoing services, such as utilities, telephone service, or health insurance coverage, must be paid for or you will lose future service or coverage. Similarly, a medical provider can refuse you future treatment if you do not pay your medical bills. (However, most providers will continue your care as long as your insurance continues to pay most of your bills, even though you are unable to make the co-payments.) If you do not pay your rent, you can be evicted. Although it requires a court proceeding, an eviction can happen very quickly - in as little as ten days from the date the rent was due. Items purchased on credit or pledged as security on a loan can usually be taken from you if you can no longer make the payments. Under Louisiana law, a lender cannot unilaterally seize your property: it must obtain a court judgment and an order instructing the sheriff to seize the property. Despite the need to follow this procedure, seizures can happen quickly and often without prior notice to you. However, a lender is unlikely to seek the return of any property unless you have missed a few payments and are uncooperative. If you need extra time, contact the lender in advance. If you cannot afford to keep an item, you should attempt to sell it and pay the lender with the proceeds or you should return it to the lender. But be aware: even after a creditor has taken one of the above steps, it may still have the right to recover money from you. For example, although a bank has repossessed your car, if its resale value is less than what you owe, you may be liable for the difference. However, whether you have to pay on these or any other debt depends on how old the debt is and on the type and amount of your assets and income. There is a limit on the time in which a creditor can sue to collect a debt. In Louisiana, the limit varies with the type of debt. For credit card debts, back rent and utilities, and other "open accounts," the time limit is three years. If you have signed a loan agreement or "promissory note" with the creditor, then the limit is five years. The time starts to run on the date payment was due. On installment debts, such as student loans, the time limit applies to each installment separately. Even if the time limit has passed, a creditor has the right to collect if you "acknowledged" the debt. This will cause the time limit to start again. Under federal and Louisiana law there are certain things that cannot be taken from you, regardless of how much you owe and regardless of whether you declare bankruptcy. The most important of these are:
If all of your property and income are exempt, you should notify your creditors. Once they know you have nothing they can take, they will usually write off the debt or at least stop collection activity. You can send a letter, like the one below, to do this. Be sure to send the letter to the creditor's correspondence address; this is usually different from the address to which you sent payments. If you do not inform your creditors of your financial status, but simply ignore the bills and phone calls, you will eventually be sued.
(Name & Address of Creditor or Collection Agency) Re: (Your Name and Account No.) Dear (Name Creditor or Collection Agency): This letter is to advise you that due to serious medical problems and my inability to continue regular employment, I am unable to continue to make payments on my account. I have been diagnosed with a life-threatening illness (Mention AIDS if you feel comfortable) and cannot work sufficient hours to meet my current expenses (State your reduced hours and sources of income). I am familiar with Louisiana law and know that I am "judg-ment proof." If I file for bankruptcy I will claim all my property as exempt and if you sue me and obtain a judgement, you will not be able to collect any of my property to satisfy the judgement. Please cease all collection activities you have taken or are considering taking. While I will provide you with reasonable financial and medical information, I must avoid stress. This includes high pressure collection activities and lawsuits. If my current situation improves and I am able to resume payments, I will tell you. In the meantime, I am returning my credit card (or please cancel my credit card privileges). Thank you for your assistance and understanding. Very truly yours, (Your Name and Address)
Even if you have a small amount of property that is not exempt, it is, as a practical matter, usually safe from your creditors. Before a creditor can receive any value from your property it must: (1) sue you and prove in court that you owe it the money; (2) get a court order instructing the sheriff to seize and sell your non-exempt property; and (3) hold the sale. This can be a fairly expensive procedure. Unless your property sells for at least as much as the court costs, attorney's fees and sale costs, your creditor will have lost money in its collection efforts. Thus, if your non-exempt property consists of an old car and an average television and stereo, your creditors are extremely unlikely to try to take them. Most bill collectors will leave you alone once you have documented your financial and medical condition. However, there may be some who will try to intimidate you into paying, even though they know you are judgment proof and even though they have no intention of taking legal action. One common tactic is for a creditor or bill collector to call you frequently or send many letters. To stop this, you should send, by certified or registered mail, a letter along the lines of the following:
(Name and Address of Collection Agency or Creditor) Re: (Your Name and Account Number) Dear (Name of the Collection Agency or Creditor): I have received numerous phone calls and several letters from you concerning bills I haven't paid. As I have informed you, I cannot pay. Accordingly, under 15 U.S.C. 1692c and Louisiana Revised Statute 9:3562, this is my formal notice to you to cease all further communication with me except for the reasons specifically set forth in the law. Very truly yours, (Your name and address)
The statutes mentioned in this letter basically tell creditors to sue you or leave you alone, although a limited number of contacts are allowed in some instances. If a creditor or bill collector continues to contact you after having received this letter, you may have the basis of a lawsuit against it. You may also have the basis for a lawsuit if a creditor or bill collector informs your relatives and acquaintances of the debt or if it threatens you with actions that it does not intend to take or that are illegal. If any of these things happens you should contact a lawyer. In a simple or "Chapter 7" bankruptcy, you keep your exempt property, all your non-exempt property is divided among your creditors, and most types of debts are erased. In a wage-earner debt adjustment or "Chapter 13" bankruptcy, you may keep your non-exempt property but part of your monthly income for the next three to five years is divided among your creditors. Even if a creditor receives little or nothing, it has no right to later collect on the erased debt. Debts not erased in a Chapter 7 bankruptcy are:
For most disabled people the only advantage in declaring bankruptcy is psychological: knowing that creditors are now legally barred from suing or otherwise attempting to collect a debt. As a practical matter, there is little advantage: as long as your creditors know you are judgment proof, they are very unlikely to continue collection activity even if you don't declare bankruptcy. Moreover, declaring bankruptcy may be disadvantageous: in addition to paying court costs and attorneys' fees, you may have to surrender non-exempt property that your creditors would not have gone after on their own. However, there are four situations in which bankruptcy is advisable:
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