Legal Question in Credit and Debt Law in Pennsylvania

Judgement and Credit Report/Credit Score

Due to serious personal problems our son cannot repay delinquent tuition and monthly late charges that equal to 18% interest on unpaid balance. All efforts to negotiate repayment with University failed. Collection Attorneys that represent University propose that our son signs a judgement agreement that they will file in the Philadelphia Court of Common Pleas. Collection Attorneys state that the judgement will extend the repayment period, reduce the amount of monthly payment to level that he can pay and change the interest rate to 6%. Our son resides in Florida, cannot appear in court in Philadelphia in person because of travel expenses and cannot afford to hire an attorney to represent him because of many financial obligations including child support for his two young sons. He is working very hard to repay his debts and avoid bankrupcy. If he follows a judgement agreement solution proposed by Collection Attorneys, what impact will such judgement have on his already very low Credit Score? Would it help his credit standing if he borrow some money from his retired parents to repay about half of the tuition now and pay the remaining balance in monthly instalments at 18% interest rate?

Thank you for the reply. We appreciate it!


Asked on 5/12/07, 12:09 am

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

Re: Judgement and Credit Report/Credit Score

If this has already been reported to the Credit Reporting Agency, I don't know that there is much that he can do to improve his credit rating but a judgment isn't going to help it. Bankruptcy is an option that he should seriously consider because the 18% loan doesn't sound like a student loan to me. His parents' loan may be better spent on a bankruptcy filing. If he is intent upon repayment of his debt, he may file a Chapter 13 which will have him paying according to the best of his ability.

Read more
Answered on 5/12/07, 12:14 pm


Related Questions & Answers

More Credit, Debt and Collections Law questions and answers in Pennsylvania