Legal Question in Credit and Debt Law in Pennsylvania

You should have used the money to settle your debt instead of paying this attorney.

The attorney should have demanded proof of your responsibility for the debt as part of the proceedings.

You can appeal the decision of the arbitrators and the case will begin anew.

In answer to your questions: there are very few exemptions in PA - you can have no more than $300 in any one bank account; a Bible, sewing machine, clothes and work uniforms. Nothing else (not a car or a home) is exempt. Your car is safe though as its liened so it cannot be seized. You rent, so your home is not an issue. Can they sell your furniture and appliances. Yes. But creditors would rather have money than your stuff because most used stuff like appliances and furniture are not very valuable.

There is no wage garnishment in PA (for most things and under most circumstances) but creditors want money so they are mostly likely to seize your bank account. I recommend that you switch to an online bank account or debit card (some employers will deposit pay onto a debit card like through Walmart) or a very small out of the way community bank/credit union and keep under $300 in the bank to prevent your account from being frozen and the funds seized.

Who is the junk debt buyer? Their attorney? How much is the judgment for? When do you anticipate having the funds? Depending on the answers, it might make sense to settle the debt rather than waste money on appealing and more lawyers. However, I have not seen your case and if this really is identity fraud, then you might do better with local counsel to appeal and demand proof. I know Attorney Greg Artim here at Law Guru (he is in the Pittsburg area but handles statewide cases) offers free case evaluations. There are other attorneys too.

Bankruptcy is an option of last resort and should really only be filed if a client has a lot of debt (my unscientific rule of thumb is $10,000 in dischargeable debt). I would not file one for just this if you owe only a few thousand because this can be settled. The filing fee for bankruptcy is near $400 but can be waived but you would have to request waiver from the bankruptcy court. They may also allow the fee to be paid in installments. I am not a bankruptcy lawyer and don't file in PA so I would suggest that you meet with a bankruptcy attorney. Many attorneys give free bankruptcy consults. Meeting with one for free and learning about bankruptcy does not obligate you to file.

If you are interested in resolving the debt in a non-bankruptcy/non-litigation context, you can email me at [email protected].