Blatt, Hasenmiller, Leibsker & Moore, LLC

Date: Thu, 10/29/2009 - 06:57

Submitted by karyn31
on Thu, 10/29/2009 - 06:57

Posts: 16 Credits: [Donate]

Total Replies: 1

Just some questions. A friend of mine received a summons for an unpaid credit card from AT&T Universal/CITIBANK. From what I understand its for a substantial amount. A court date was listed on the summons, and he has to respond to the summons within 20 days or else they will order a default judgement. He resides in the state of PA. From what I understand creditors cannot garnish your wages but they can garnish bank accounts. Is that true? Would they have to receive a judgement before that can happen? He does not own anything, but is worried because he has direct deposit into his bank account. When he goes to the hearing will they work with him on payment arrangements and not garnish anything? Any help would be appreciated. Thanks so much!

PA does not allow for garnishment for credit card debt. However

PA does not allow for garnishment for credit card debt. However, they CAN take money from your bank account with a judgment.

What your friend can do in this situation depends on a few factors:

How old is this debt? When was the last time your friend made a payment on it? PA SOL is 6 years for this, so if it is over 6 years since a payment was made, then they can claim out of statute as a defense. BUT that can still pack a bite because that kind of dismissal will get a 1099c from the IRS and your friend will have to pay taxes on that debt.

The first thing your friend should do is deny everything and request for documentation in Discovery. Your friend wants to make sure the correct company is suing and for the correct amount. This means you want to see a signed contract and a final bill. You really push for these things, because if they can't provide them, you can get it tossed out for lack of evidence, or failure to comply with the discovery request.

If they can provide everything, then your friend needs to take all documentation outlining his/her living situation and the judge will help to work out a payment arrangement that won't break them.

Make sure your friend answers that summons in the 20 days allowed! That is VERY important!

lrhall41

Submitted by goldenbast on Thu, 10/29/2009 - 09:58

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