Legal Question in Credit and Debt Law in Pennsylvania

Bank account frozen by collection agency

In 06/07, I was sued by a collection agency for a credit card that I hadn't paid since 11/03, balance $4,700. I owed the debt, couldn't pay, didn't attend the hearing & default judgement was entered. On 12/20/07, my bank was served on my bank for $8,700 and my acct w/less than $1K was frozen. How much time do I have to respond before the funds are disbursed? One acct belongs to my minor child, titled in his name or me w/his SS#. Will that money be taken? If I don't respond, the money is disbursed, can they continue to garnish any new accts? Will pmt arrangements release the accts? I don't want to file bankruptcy, but will if necessary. What is the best way to proceed. Thank you.


Asked on 1/07/08, 7:14 pm

1 Answer from Attorneys
John Gibson John W. Gibson, Esquire

Re: Bank account frozen by collection agency

For a single debt of $8,700.00 it is not generally worthwhile to file a bankruptcy. However if you have other debts bankruptcy may be a consideration.

The bank has to answer the garnishment interrogatories within 20 days and then the creditor will get a writ against the bank as garnishee and the bank will send the available funds.

You want to fill out your exemption form which was served with the writ of execution and take it to the Sheriff's Office asap. One of your exemptions is $300 and you may also want to attempt to claim the minor's funds as exempt.

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Answered on 1/12/08, 2:01 pm


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