Legal Question in Credit and Debt Law in Pennsylvania

Being sued for Materials bought with a line of credit and now unable to pay bal

I bought $5000 of plumbing equipment from a store on a line of credit. Was injured on the job & was unable to work for a period of time.I had No income and had to live off what little money I had from jobs I previously did & was unable to pay my credit. I got a letter from Lawyer telling me that my account had been referred to them for collection, I wrote a letter explaining my situation & informing them that I have every intention of paying the dept but in my current financial position was unable to make a payment in full & was hoping they would accept a payment arrangement of $20 a month untill a later date when i would be able to increase the payments. I also wrote a check in the amount of $20 & sent it with the letter. I also paid my next payment of $20. I was served papers saying that i am to appear in court. I called the attorney & was told he would not accept my payment arrangement. how will the court determine how much i will pay, should i bring anything.I want to know how this process works


Asked on 10/21/03, 3:12 am

1 Answer from Attorneys
Matthew Nahrgang Nahrgang & Associates, P.C.

Re: Being sued for Materials bought with a line of credit and now unable to pay

When anyone sues you, you have 4 choices. 1) You can ignore it and they will obtain a judgment. After that, they will seek to execute by seizing your bank account and/or by selling your furniture, etc. 2) You can defend and hope to win. Also, you do not need to appear if it is at the district justice, a default judgment will be entered and you can appeal within 30 days. The appeal is not complicated, but the rules must be followed strictly or the appeal will be dismissed. On appeal, you can also defend it, but eventually a judgment will be entered and they can execute. 3) You can negotiate with them which in this cases seems unlikely to get you anywhere. 4) You can file a bankruptcy.

A bankruptcy will stop the lawsuit immediately and, assuming you qualify, the debt you owe will be eliminated. Additionally, all your other debts will be eliminated, except for secured loans. Examples of those are your car loan and mortgage. If you do not pay those, the lender can take the collateral, despite a bankruptcy. But that will be their only remedy.

You should consult with an attorney immediately to protect yourself. Please feel free to call or E-mail me on a free initial basis.

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Answered on 10/21/03, 9:24 am


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