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 Posted: Wed Jan 31, 2007 4:16 pm Subject: I need help with my debts. I am taken to the court |
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I'm being taken to court over one of my debts for $2,500 and have over 5,000 more i owe can you help me? I have no assets but do have a job. I make about 16,000 a year.
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lissatwal
Joined: 31 Jan 2007
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| Posted: Wed Jan 31, 2007 4:19 pm Subject: |
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Now that you have registered with this site someone will be calling you to help discuss your options. Odd are a judgement will be enetered against you, and your wages could possibly be garnished. What kind of debt is this? Credit cards, pdl's, loans, etc . . .
How old are the debts? If you provide more information we can better judge your situation . . . .
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goudah2424
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| Posted: Wed Jan 31, 2007 4:25 pm Subject: |
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Is your account defaulted? Make a small payment and make it current. The creditors might stop any legal actions against you. Tell them that you are speaking with a debt counselor and they will be contacting shortly for a payment arrangement.
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anthony
Joined: 22 Jun 2006
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| Posted: Wed Jan 31, 2007 4:27 pm Subject: |
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That is a good idea . . . . Most companies will stop legal proceedings against you if you pay up . . . . It shows that you are at least making an effort to pay your debts. Just be sure to make sure the credit counseling company you chose will work with the company you owe the debt to.
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goudah2424
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| Posted: Wed Jan 31, 2007 4:34 pm Subject: |
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A legal case in the court is very costly. If you are willing to resolve the matter outside the court, the company will be least interested in going to the court. A case is filed only in rare cases when there is a huge amount to be paid and all other actions have failed to recover the money. If you don't have money to pay the debts, how will you pay the court costs and fees? The judge will analyze your financial situation before setting a repayment plan.
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anthony
Joined: 22 Jun 2006
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| Posted: Wed Jan 31, 2007 4:35 pm Subject: |
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I forgot that if a judgement is entered against you that you are responsible for court costs and fees . . . . That makes it eve nworse!
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goudah2424
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| Posted: Wed Jan 31, 2007 5:19 pm Subject: Help |
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The debt was originally a credti card debt but it was purchased by another company. The papers i received were from an attorney and I got a copy of the complaint against me in the court of common pleas. I also tried to make a payment arangement with them and sent them a payment of 50 dollars but they said it was too little to late and that they were persuing legal action I just want to know if I have nothing what are they going to do and can they garnish my wages (someone told me they can't do that in PA) I also somehow make to much to qualify for legal aid but can't really affrod an attorney any suggestions?
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lissatwal
Joined: 31 Jan 2007
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| Posted: Wed Jan 31, 2007 6:14 pm Subject: |
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I found this about wage garnishment in pennsylvania:
| Quote: | 39. Pennsylvania Wage Garnishment
No wage attachment in this state except for taxes and child support.
The Pennsylvania Department of Revenue is authorized to garnish wages without obtaining a court order for collection of unpaid state taxes. The Department will first notify taxpayers of its intent to contact their employers to begin withholding. If a taxpayer fails to resolve the tax liability, the taxpayer's employer will be ordered to begin garnishing wages and make payments to the Commonwealth. Employers may retain up to 2% of the amount collected to compensate for costs of additional bookkeeping. |
http://www.fair-debt-collection.com/state-wage-garnishments.html
So the way I read this wage garnishment is only done in your state for taxes and child support. So I don't think you need to worry about them garnishing your wages.
I don't have any suggestions for the legal representation . . . . I'm not sure that you need to have a lawyer for your situation . . . . I would keep copies of the letters you've sent them trying to set up payment arrangements, and make a copy of the check or money order you have for the $50, if you still have that. You can show it to the judge as proof that you have been trying to work something out.
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goudah2424
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| Posted: Wed Jan 31, 2007 6:19 pm Subject: |
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There are other ways a creditor can collect on a judgement.
| Quote: | When a creditor obtains a judgment against you, he has several options to choose from to try and satisfy the judgment:
(1) The creditor will try to attach a lien against any property you own, such as your home. This does not mean you will be thrown out of your home, but rather, that you will not have clear title to your property after the creditor files a lien against it. The interest on the judgment lien will continue to accumulate over time, and if and when you sell your home, the creditor will receive the value of the judgment with interest from the sell of your home before you see any money, provided that the statute of limitations on collecting the judgment hasn't run.
(2) The creditor can locate any monies you have in bank accounts and seize them. Don't think that the creditor can't locate the $5,000 you have in savings at your local bank. There are businesses who specialize in helping creditors and debt collection agencies locate all of your assets, including all of your bank accounts. If the creditor finds any money you have that is not exempt from seizure by your state's laws, he will use his judgment to levy levy your bank account.
(3) A creditor might try to garnish your wages, particularly if you don't own any property or have any money in savings. The federal government and many states have enacted legislation that limits the amount a creditor can garnish from your wages. The only way to avoid the wage garnishment is to resign from your job, find another, and hope that the creditor doesn't locate you again, at least for a year or two. The creditor could force you into becoming a job hopper for the rest of your life in order to stay one step ahead of a wage garnishment. |
I'm looking for more info specific to PA right now . . . . . So I will post more info if I can find some.
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goudah2424
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| Posted: Wed Jan 31, 2007 6:21 pm Subject: |
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| Quote: | What Property is Exempt from Seizure to Pay Debt?
When you cannot pay an unsecured debt and a creditor or debt collection agency is threatening to sue you, what do you do? All states have laws that exempt certain income and property from being seized or attached by a creditor or debt collector. For example, those who live solely on social security (or have a very limited income) can defend a creditor lawsuit by proving to the judge in court that their social security check is their only source of income and cannot be taken by creditors. There is a good chance that the debt might be dismissed altogether in this situation and without filing bankruptcy.
How do you keep a creditor from taking your income and property you have?
Find out what property you can declare exempt in your state, and when you are sued and you go to court, tell the judge that you want any exempt income and property declared legally exempt. Make sure that you do not say or sign anything that waives your property exemption rights. IT IS YOUR RESPONSIBILITY TO TELL THE JUDGE THAT YOU WANT CERTAIN PROPERTY DECLARED EXEMPT. DO NOT WAIT FOR THE JUDGE TO ASK YOU, AS SHE / HE MIGHT NOT EVER ASK YOU.
The creditor or collection agency who is suing you will likely try to get you to sign a repayment plan. Do not agree to a repayment agreement that you cannot afford, and make very sure that the agreement you sign does not include a clause where you waive your right to have your income and property exempt from creditors as your state provides. If you can only afford $15 a month, then tell the judge this -- in fact, prove it to him by bringing as many records of your living expenses to court with you, including utility bills and grocery receipts, as you can. DO NOT SIGN A REPAYMENT PLAN AND THEN DEFAULT ON IT. IF YOU CANNOT AFFORD TO PAY THE DEBT, TELL THE JUDGE THIS AND DON'T AGREE TO REPAY IT. |
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goudah2424
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| Posted: Wed Jan 31, 2007 6:29 pm Subject: |
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Can the funds in my bank account be seized or frozen by collectors?
The short answer is yes! If you owe creditors, collectors or anyone else money, they can obtain a money judgment and have the funds in your bank account frozen or they can seize them outright. Here is a brief overview of the rules:
Whoever holds a judgment against you can go to someone else who owes you money or is holding money for you and intercept that money through a wage garnishment or garnishment of your bank account.
Anyone who owes you money, or holds money for you, is called the "garnishee defendant" and through the garnishment process, can be forced to reveal to the court how much money they owe you. Then, the court can require, through an order called a Writ of Garnishment, to force the bank or your employer to pay a certain part of the money owed to you, into the court registry.
After receiving payment, the court turns the money over to whoever holds the judgment. In order for someone to garnish your wages or bank account, they need to know someone who owes you money or where you bank or where you work before they can proceed with a garnishment action.
The garnishment process costs a small fee (around $20.00 in most states), plus the costs of serving the papers. You will more than likely have to pay these fees as well.
Note: Only disposable earnings and the amount set by state law can be garnished from wages. Ask the clerk of the court for the correct amount in your state.
Garnishment of Bank Accounts
Bank accounts can be garnished and, when they are, it is almost always a surprise to the debtor. What typically happens is collectors obtain money judgments (usually by default) and then use the judgment to freeze the funds in your bank account. State law and banking rules govern how the bank must handle the garnishment process.
Collectors always notify the bank first and then notify the debtor. This way your funds are frozen before you can take any action such as withdrawing all your funds. Notifying the bank first is perfectly legal. You typically receive the notice (including your rights) a day or two after your funds have been frozen.
In most states, the garnishment can only freeze funds already in your account at the time of service on the financial institution. During the time the garnishment is in effect, the financial institution cannot honor checks or other orders for the payment of money drawn against your account. This means any outstanding checks will more than likely bounce or be returned for NSF. The exception to this rule is if your account has more on deposit than the amount of the garnishment. In this case, the bank can honor checks up to the amount that will reduce your funds below the amount of the garnishment. When the amount being garnished is paid, the freeze on your account must be terminated.
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goudah2424
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| Posted: Wed Jan 31, 2007 6:33 pm Subject: |
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| Quote: | Collection Procedures Under Pennsylvania Law
WHAT HAPPENS IF A LAW SUIT IS FILED AGAINST YOU?
Any creditor can sue you if you get behind in your payments. The creditor may file a law suit at the District Justice's Office if it's for a small amount, or may sue you in the County Court of Common Pleas, or in Federal Court. The creditor must pay a filing fee, and must pay a PA constable or sheriff to serve you with a copy of the Complaint. If you are served with a complaint, you should read it carefully. The front page usually says what you must do to defend the law suit. If you are sued at the District Justice, you must call the District Justice's Office and tell them that you plan to appear at the hearing. If you are sued in the county or federal court, you must file a written response within 20 days. If you do nothing, you will lose automatically. If you believe that you do not owe all the money that the creditor is suing you for, or if it has been several years since you have made a payment on the account, you may want to call and ask for a pro bono referral to one of the private attorneys who have volunteered to defend law suits for free.
WHAT HAPPENS IF YOU LOSE THE LAW SUIT?
The court will enter a judgment against you. A judgment is basically a sheet of paper that says that you owe someone a certain amount of money. A copy will be given to you and the creditor. You usually have 30 days to appeal judgments. If you do not appeal, the creditor can pay a PA constable or sheriff money to try to collect the money from you.
HOW DOES THE CONSTABLE OR SHERIFF TRY TO COLLECT MONEY?
They can freeze (garnish) your bank account. You may be able to help you file a bankruptcy to stop the garnishment. The PA constable or sheriff can also sell your property. If you own a house or a car that has value, a creditor may decide that it is worthwhile to spend money to sue you and to ask a constable or sheriff to sell those items.
CAN A PA CONSTABLE OR SHERIFF SELL YOUR HOUSEHOLD GOODS TO COLLECT UPON A JUDGMENT?
Yes, some creditors are mean enough to do that. Here's how it works. The sheriff comes to your home and levies upon (makes a list of) your personal property. The law requires that you let the officer in, but ask for identification first. You cannot hide, move, sell, or give away the levied items. If you threaten to do so, the officer will feel that he has a legal duty to take your stuff that day and put it in storage to keep it safe until the day of the sale. The officer will give you copy of the levy and will give you notice of when the sale will be held. If you ever receive notice that a constable or sheriff plans to sell something, you can a lawyer. They may be able to help you file a bankruptcy to stop the sale. |
http://www.nlsa.us/legal_information/consumer/cn1_collection_procedure s.htm
So that is pretty much what could happen in PA for judgements. If I were you I wouldn't keep much money in the bank for a long time . . . . .
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goudah2424
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| Posted: Thu Feb 01, 2007 7:50 am Subject: |
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I am from PA also. Been there done that with the whole collector /magistrate thing.A few qusestions for you first.
Do you happen to know how old this debt is and when you made your last payment on it?
The $50 payment you said you made.. did you actually send it or just offer it to them and if you did , did they accept and cash it?
Did you happen to send out a dv letter to this company also? IF not you still can even if its past the 30 days.
AS for the garnishment everyone is correct .No garnishment in PA for cc debt.But just as they said there are other means of collecting on judgments.
As for the hearing if its at a local magistrate its pretty informal not at all like you see on tv.You, the creditor,and the judge only in a room.Chances are if they show up( some do not) they will try to speak to you alon first to try and settle out of court. Basically its an agreed judgment ,you come to some kind of payment plan, they submit it to the judge.But just remember if you agree to this its still a judgment so if you default they will still come back and do whatever they have to to collect.
If they bring any kind of documentation with them please read over it carefully and DO NOT agree to anything if you do not think its correct.Its you right to have it validated with proper proof.Also do not agree to any payment that you cannot realistically afford.
If you have any more question please just ask me I will try to help as much as I can. I have a feeeling I know who this collector is your referring to. If its the one I'm thinking of seems they are doing this alot in PA right now.
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taksmom476
Joined: 15 Jan 2007
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| Posted: Thu Feb 01, 2007 4:59 pm Subject: Thanks for all the info |
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I sent them a payment at the end of november after I received a letter from their lawyer. I mailed a payment of fifty dollars with a letter explaining I wanted a payment plan they cashed my check but did not get back to me about a payment plan They cashed it on Dec 21st and I got my notice of complaint Jan 31. Thanks for all your help. I live with my dad and fiance the only things I own are my clothes everything else in the house belongs to one of them. I don't have a car or anything what will they do then? I don't disagree that I owe the money I just don't have it to give them I pay my dad rent pay half the utilities and my fiance doesn't have a job right now and my dad gets disabity payments so he doesn't work either.
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lissatwal
Joined: 31 Jan 2007
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| Posted: Thu Feb 01, 2007 6:09 pm Subject: |
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They could still sieze your bank account, if you have one. I beleive you can claim to be judgement proof. That means you don't have any money or assets to satify the debt. You have to prove that to the judge. But the judgement is still entered, and when you do get a job you will have to pay then.
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goudah2424
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