Legal Question in Credit and Debt Law in Pennsylvania

Re: Collectiion Company

A creditor is never obligated to settle a debt. Rather, they are free to pursue every penny of the amount they are owed, including interest, late charges and legal fees if applicable.

You may have options in seeking legal counsel to negotiate or possibly filing a bankruptcy.

I trust this answers your question but feel free to call or E-mail on a free initial basis.

Re: Collectiion Company

Collection agencies are bound by the federal Fair Debt Collection Practices Act and, in Pennsylvania, by the Fair Credit Extension Uniformity Act. Under the Fair Credit Extension Uniformity Act, once you are represented by an attorney even a creditor may not contact you unless the attorney fails to respond to a communication from the creditor within a reasonable period of time or the attorney consents to such direct communication. It is the same thing for debt collectors (Collection Agencies) under the federal Fair Debt Collection Practices Act.

Generally speaking, attorneys usually do a better job at negotiating this type of debt than credit counseling agencies, simply because there is always the threat of a bankruptcy petition. Even though you have equity in your home, you may still qualify to file a "no asset" bankruptcy petition if the amount of your equity is within your allowable bankruptcy exemptions.