Legal Question in Credit and Debt Law in Pennsylvania

A judgment is issued by a court and means that you owe the amount due. Additionally, a judgment gives the judgment-creditor certain rights, including the ability to obtain an execution. An execution allows the judgment-creditor to pursue liens on properties you own, garnish wages, and discover and seize assets. Any consumer being pursued by collection agencies or law firms should be well versed in their rights. Do your research on the Fair Debt Collection Practices Act (FDCPA) as well as other tips on dealing with collectors. Do not ignore any court summons, your failure to appear in court will result in a default judgment against you. If you retain an attorney, the collectors are required to stop calling you, and to deal with the attorney instead. I hope this helps. You're best strategy is to be informed!

Just so you know, there is no wage garnishment in PA. I don't know what other assets you have, but they can levy on your bank account on amounts over $300 or more. If you have any exempt income (like Social Security or a pension) they cannot touch that.

You might be able to do a chapter 7 if you qualify for that, but there had to be a reason that you did a chapter 13 and your payments might still be the same.

There are ways to handle this debt depending on your situation. You should only pay a lawyer if you have a valid defense to the complaint. A valid defense might be: (1) the creditor sued the wrong person; (2) the amount stated by the creditor is in error; (3) the statute of limitations bars collection of the debt; (4) you already paid off the debt; or (5) required documentation/evidence of the debt is not attached to the complaint.

If none of these apply, then there is no sense in gettting an attorney to file an answer on your behalf and your money will be better spent on working to settle the judgment. If you wish to retain me for a reasonable fee, I can help negotiate a settlement or payment plan. Or you can do it on your own.

If you do not have the money right now and are basically judgment proof, then there is not a damn thing the creditors can do to you (although I have heard of creditors putting people in jail and judges going along with this scam! we do not have debtors prison and this is just wrong). Anyway, in that case, save your money. When you come up with at least 50% of the debt, offer to settle the judgment for that amount. The judgment earns interest at the legal rate of 6% per year so the judgment will have grown. Some creditors may want more than 50% because the case has gone to litigation and the amount could be as high as 80% or more.

When you have the funds, see if they will accept them or if they want more, see if you can put the money you have saved as a down payment and pay off the balance in installments over a 6 month to one year period. Payments are typically 1% to 2% of the debt. If this will not work, then keep saving until you do have the funds.

Remember, no money changes hands until you get the settlement terms in writing.

Feel free to contact me if you would like my assistance.

Rache Hunter

Attorney at Law

[email protected]

(678)-687-9693

Admitted in GA, PA & NC