Legal Question in Credit and Debt Law in Pennsylvania

Why are you paying these jerks at all?

You do not provide the pertinent details. Have you been sued? The advice will differ depending on your situation. If you have not been sued and you default, then the creditor can sue you. If you signed a confession of judgment, then it will allow them to come into court and get a judgment without any of the usual formalities of you filing an answer or counterclaim. If a judgment was already entered, then they can try and enforce this. There is no wage garnishment in PA. However, they can freeze your bank account and have the sheriff seize and sell any other assets that you have that are owned free and clear.

If you keep less than $300 in the bank and otherwise don't have a car or land owned free and clear, then there is not much they can do to you.

Judgments never go away though. They can be enforced against real property for 5 years from the date of entry and renewed for additional 5 year periods. They can be enforced against personal property for 20 years. Judgments earn interest at a rate of 6% which accrues on a daily basis.

You do not indicate how much you owe to Capital One or for your medical debt. Capital One typically will settle after a judgment for between 50% and 80% of whatever the judgment has grown to. Medical debts also can be settled, depending on your circumstances.

If you have over $10,000 in debt, I suggest that you consider filing bankruptcy as it will wipe out the medical debt as well as the Capital One debt (even if judgment is entered, the bankruptcy attorney can file a motion to avoid the lien to the extent that it impairs your exemptions). I suggest that you get a consult with a bankruptcy attorney and see if you can file a chapter 7 bankruptcy. Many attorneys give free consults.

If bankruptcy is not right for you for whatever reason, debts can still be resolved. If you are interested in reviewing your situation in a non-bankruptcy non-litigation context, I give free email consults. Please contact me at [email protected] if interested.