Legal Question in Credit and Debt Law in Pennsylvania

My wife and I own a home in Pennsylvania that is paid in full. WE only have to pay the yearly property taxes. I have a discover card that is $13,000. My minimum payment a month is $308,00. I only get social security which is $585.00 per month. That is the only asset. My name is only on the discover card. I am finding it hard to pay this credit card. If I stop paying it, will it go into a collection agency where I could make a deal with them to pay alot less than $308.00 per month? I understand that it will affect my credit score. I am 74 years old. Can they take the house away?


Asked on 11/22/14, 10:54 am

1 Answer from Attorneys
Rachel Hunter

If you own the house jointly with your wife then the house is exempt, meaning it cannot be seized. If your wife dies first though before the statute of limitations runs, then the house will pass to you automatically and at that time the house could possibly be taken. However, that would make for really bad press. Heartless creditor kicks out poor widowner.

Discover will settle for about 30% to 40% of the debt if you can get it before it goes to a law firm. Your social security income is totally exempt from garnishment - do not mingle it with non-social security income of your own or that belonging to another person. No joint bank accounts with children - only with your spouse if she also gets social security or similarly exempt income.

Don't make a payment plan! Make those payments to yourself and start saving money now! You need to be disciplined. But if you can sock away as much as you can it may be possible for Discover to settle lump sum. I have settled debts for my PA and NC clients with them for as low as 30%.

Please email me at [email protected] if you are interested in further assistance.

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Answered on 11/22/14, 11:52 pm


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