I have been permanently disabled (SSD) since 1991. At present I reside in Arkansas. I was married until 2002 and able to pay my credit cards mainly due to his income. After the divorce I was able to work part time for a while but mainly lived off of my disability income and a small inheritance from my mother. Long story short, due to my illness I have been unable to pay some debts, in particular a credit card in excess of $5,000.

Recently I received a letter from a lawyer who is retained by the collection agency demanding payment and threatening a law suit.

Am I "judgement proof" since my source of income are SSD benefits? My house is homesteaded. I own 3 vehicles; none of which are operating. I have no savings or investments.

How can I notify the attorney and creditors of my circumstances and if I do, would it make any difference? How do I prove being judgement proof?

If a law suit is filed what should I do?

Thanks in advance for all replies.