Legal Question in Credit and Debt Law in Pennsylvania

unsecured debt wage garnishment

For the past 27 months as of 10/2004, we had been working with consumer credit education services to reduce our debt and become debt free. We had been making a 2235.00 payment every month (never missing a payment)to 17 creditors. We were 100,000.00 dollars in unsecured debt and managed to cut this down to half. We only had 24 months to go. As of 10/29/2004 my husband was placed on short term disablity and we were unable to continue making this payment as he lost 40% of his pay. We considered filing a chapter 13 bankruptcy, but feeling that we owed the money, we instead are trying to work with a debt resolution company to take care of this. If we were to file chapter 13, it worked out that our credtiors would receive a 27% settlement over a 60 month term. We have opted to offer them a 56% settlement over the same 60 month period. They are stubborn and some have retained attorneys to collect payment. My question is, if the take us into court to attempt garnishment or levies on our property, will it look better in the eyes of the court that we have been attempting to pay back these debts?


Asked on 2/12/05, 8:02 am

2 Answers from Attorneys
Mark Johns Mark Johns, Esquire

Re: unsecured debt wage garnishment

I admire your principles in attempting to pay back the debt. I would recomend though that you obtain legal counsel to do the negotiating for you. I agree that bankruptcy is often overused and abused, but if you cannot make the payments, you can't make the payments. Most unsecured creditors would be happy with 50% and many would take any percentage when faced with a bankruptcy situation. I offer free consultations and have a good deal of experience negotiating debt reductions.

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Answered on 2/12/05, 9:39 am
Charles A. Pascal, Jr. Law Office of Charles A. Pascal, Jr.

Re: unsecured debt wage garnishment

I agree with Atty. Johns. Get an attorney to negotiate for you. "Consumer" credit counseling agencies are paid by, and work for, the very people that they are supposed to be negotiating with on your behalf. You don't get a fair deal there.

In terms of where to go from here, after you hire an attorney to negotiate for you...if they still don't want 50%, screw 'em (legal term there) and file bankruptcy and give them the 27% they deserve.

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Answered on 2/12/05, 10:36 am


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