I need help with my debts. I am taken to the court

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 . . . .

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.

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.

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.

I forgot that if a judgement is entered against you that you are responsible for court costs and fees . . . . That makes it eve nworse!

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?

I found this about wage garnishment in pennsylvania:



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.

There are other ways a creditor can collect on a judgement.



I'm looking for more info specific to PA right now . . . . . So I will post more info if I can find some.

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.

http://www.nlsa.us/legal_information/consumer/cn1_collection_procedures.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 . . . . .

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.

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.

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.

I would not worry to much about the garnishment or them doing anything to your father or his things.But the bank account seizure is the thing to worry about. They now have your banking information from the check you sent them.
You could still try again with them to work something out if you want ,they may eventually be willing to work out something with you.I see that you registered on the site here if someone has not contacted you yet they will be and could possibly guide you as what to do since you also have other debts.

You may be found judgment proof ( basic meaning is execution proof, no assets and can prove it) for the time being. But as soon as you are more financially stable they may try to collect on the judgment.

Judgments in PA are good for 5 years renewable every 5 years /up to 20 years total.
Interest on judgments in PA is 6%.
Also judgments go on public record which does alot of harm to your credit.

If it does get to court tell the judge just what you said here ,that you tried to set up some sort of payments and also take your cancelled check with you to show that you tried to make payments.