Legal Question in Credit and Debt Law in Pennsylvania

I and in PA and have been sued by discover card for almost $9900. I do not deny that I owe the debt, but I am virtually penniless. I have a disability that precludes me from working outside the home so I work from home. I own an car and since I am disabled, I need the car to get around. My current income is barely enough to pay the mortgage and I get county assistance for food and heating. My house is on the market. I had hoped to sell it before any judgment happened. I need to preserve the equity in the home for criminal legal fees and proceedings for a family member. Bottom line: if I cannot pay the lawyer my family member is in prison for life. I cannot afford a lawyer to represent me against Discover card. I also would be unable to pay any court-appointed payment schedule alone if I were to file bankruptcy. I have 20 days to answer the complaint. Any guidance would be deeply appreciated.


Asked on 12/07/10, 12:47 pm

1 Answer from Attorneys
Rachel Hunter

Have you considered filing a chapter 7 bankruptcy? That does not require you to pay back anything. It sounds that with your income you should qualify for that instead of a chapter 13 where you come up with a payment plan based on your debts. Talk with a bankruptcy attorney, preferably one who gives free consults. You ought to know your options.

Discover will want between 60% and 80% to settle this judgment. If you have equity in the home, they are going to get that. I would wait until you sell and see whether, in your case, they will accept 50%-60%, paid in a lump sum, to get this resolved. You can then help your family member with the rest of the money.

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Answered on 1/11/11, 9:48 pm


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