Legal Question in Credit and Debt Law in Maryland

I had two payment plans with Peroutka and Peroutka. These were for store credit cards which I defaulted on. I mistakenly thought Peroutka was collecting for these creditors, but now realize they bought these debts. I missed payments because I had dental emergencies. Peroutka garnished my bank account, costing me $348.00 in overdraft fees and a $100.00 charge. My bank account was closed because I could not pay the fees in time. There was no money in the account for Peroutka so they waived the garnishment. They told me to contact them when I could resume my payments to them. I am broke and jobless and have not called them. They have begun to call me again. I have payed them $4374.00 on original debt of $2351.99 and $1918.83 = $4270.82. I cannot find my agreement with them. I am afraid to contact them without being armed with knowledge. Is there anything I can do? They have me still owing them $196.84 and I believe $1750.00.


Asked on 12/05/12, 9:11 am

1 Answer from Attorneys
Cedulie Laumann Arden Law Firm, LLC

It makes a difference whether the debts have been reduced to judgment. If the creditors filed a court case and won, they would have a judgment and right to garnish property to pay the judgment. Judgments accrue interest at 10% in Maryland so they tend to get larger with time if not paid right away.

Maryland law offers certain exemptions from judgment, but they are not automatic. Generally a judgment debtor can protect up to $6,000 worth of property and keep that out of creditor hands, though this requires filing appropriate paperwork with the court. Assuming this is a district court matter, you may wish to claim your right to exempt property from collection by filing a form with the court (available from the clerk).

Bankruptcy is another option to wipe out debt, though it involves court costs and often hiring an attorney.

While I hope the general legal information helps, please understand that this is not legal advice nor does it create any attorney/client relationship. The specific facts of your situation may affect how the law applies to you.

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Answered on 12/05/12, 10:01 am


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