Legal Question in Credit and Debt Law in Pennsylvania

First of all, setting up a payment plan is just a bad bad bad idea especially for debtors who live in PA. Payment plans, if they need to be set up at all, are usually 2% to 4% of the total debt and the creditor like the judgment to be paid within 1 or at most 2 years, so what the collector told you is correct. Also, if you want to do a payment plan like this, most creditors are going to want the full balance of the judgment plus interest. The debt has earned interest at a rate of 6% per year since the judgment was entered and I doubt that $25 a month is going to cover very much. If that is all that you can afford, then stick your money into an online savings account and make payments to that. Once you have at least 50% of the judgment amount plus accrued interest, then you try to resolve the debt.

The credit card company did not "place" a lien on your home. The entry of the judgment automatically acts as a lien on any real property. Judgment liens can be revived every 5 years. This means that you will not be able to refi or sell your property unless the judgment is paid and the judgment is satisfied. However, if you are not planning on selling or refinancing your property, then you are good to and most creditors will not make you sell your property unless there is a lot of equity in the home. PA offers no homestead protection.

There is no wage garnishment in PA for a credit card debt so whoever you talked to is either trying to scare you into paying or is an idiot.

The creditor can levy on your bank account provided that you have $300 or more in there, but it depends on the source of those funds. Some funds cannot be seized, such as Social Security, disability, unemployment or retirement benefits. If you receive regular income, then always keep less than $300 in the bank.

Even better is to get an online bank account or debit card as it cannot be seized. Many companies offer this such as ready-debit, ING Direct, Wal*Mart and others.

Please contact me at [email protected] if you would like more specific advice regarding your situation. I will give free consults via email. There is a fee for a phone consult.