Legal Question in Credit and Debt Law in Pennsylvania

Why would the judge set payment at $150 a month? I don't understand.

The process in Pennsylvania is that the creditor can sue. You have 20 days to file an answer, if one is needed. If you file an answer, both sides can engage in disovery - they ask you written or oral questions, ask for admissions and ask you to produce documents and you can do likewise. Eventually, they will ask for judgment. If you don't file an answer, they send you a 10-day letter advising that they intend to get a judgment. If you still do not answer, they go ahead with the judgment.

After 30 days after the judgment is entered, the judgment becomes final. It depends on who the creditor is; some law firms will send out what is called discovery in aid of execution. They are looking for assets. They can seize your bank account if you have more than $300 in there, They cannot garnish your wages for a credit card debt. The judgment will be a lien on any real property that you own. Although there is no homestead exemption, creditors usually will not order the sheriff to sell your things, but it depends.

I have seen creditors send execution to clients where the client can request a hearing. However, even if a hearing does occur, this relates to the exemptions, not payment plans so I do not know why a judge would order any payment.

Can a creditor object? I suppose they can. But they would have to prove yhat you can pay more than what might be ordered by the judge.

Where are we at in terms of the legal process? How much is owed on the debt? How much, if any, can you afford to pay? Who is the creditor? The law firm?

Most creditors will accept between 50% and 80% of the judgment. Do you have close to 50%? Would you like to resolve the debt? Do you have other debts?

If it seems like I am asking a lot of questions, the answers to these questions will depend on what you do. I give free consults via email and can review your case in confidence and give you more specific advice. Please contact me at [email protected] if interested. I also can resolve debts for a reasonable fee if you have the funds to do so.