Pennsylvania here. Unf about 4 years ago I had to let my credit card debt of 2500.00 go to default and did nothing about it, the debt was sold to a collection agency, and I of course like alot of people just ignored them and did nothing about it, several months ago I received a letter stating that they were…
First of all let’s get the record straight
PA is one of the few states does DOES NOT allow for wage garnishment (someone was wrong in that area)
By ignoring them, they won the case in what is called a “default judgment” because you ignored the court summons. You would have had a chance to set up a payment schedule had you appeared in court.
All they can do is seize any assets you have, funds in bank accounts, property, autos (if paid) or any other large items you own.
You can forget any tax refunds as those will also be seized.
Your only way around it is to cash your paycheck and pay for everything in cash, close your bank accounts. If you do not want to do this, then you will simply have to pay off the judgment.
In PA the time limit for reporting a judgment is 5 years but under the FCRA it is 7 years so it will remain on your credit report for the full 7 years.
As to your friend, his income can not be garnished nor his accounts seized if his sole income is from Social Security.
The only exceptions are for debts such as back child support, taxes owed, over payments and fines or restitution involving a criminal act.
Hope this helps answer your question
The only thing you didn’t understand was the term “unsecured debt”! Just cause you bought clothes or household furnishings with this card, doesn’t mean they can’t collect or sue you for the money. You left them a trail to follow. Most deadbeats aren’t as easy to find as you were. You didn’t change your bank account, you didn’t change your job, you probably didn’t move cause you got their mail and ignored it. Hey, you were a sitting duck. You didn’t go to court to fight this – if you had the court would have taken your expenses into consideration for the judgment, and you would have had the opportunity to ask for a decent settlement. They got a judgment against you and can collect from any assets that they can find, don’t be surprised if your checking account didn’t have enough to satisfy the court order, they’ll come after your car.
The bank sold your debt to a collection agency before the statute of limitations in your state expired (4 years from last payment in Pennsylvania). If they don’t get enough money from your bank accounts, they will probably then ask the court for an order to garnish your wages (up to 100% can be garnished in Pennsylvania).
Once the statute of limitations expires, the collection agency cannot legally collect your debt (but some still try).
Since the collection agency is probably short on time to try to collect the debt, they may negotiate with you and not garnish your wages if you set up a payment plan and make one immediate payment. However, once you make one payment, the statute of limitation clock resets again and you will be obligated to pay the negotiated amount for another 4 years.
Wow, your screwed! The only thing I can think of is get a Giant Eagle card and stop your check from automatic deposit. The judgement will still be againist you but you will have your pay checks, until they attach your wages. Your gonna have fiqure out a way to pay it off. Borrow or try to get a loan, get a job at Giant Eagle and that way at least they will not make you pay for that check gettin cashed. Sorry. You should have dealt w/ it sooner cause you could have gotten a pay off amount. Could have been like 1500. If you gotta have a lawyer go to legal aid in westmoreland county, should be in the phone book or call welfare and see if they have the #. Hope this helps
A credit card IS non-secured debt, but that just means they don’t have something they can just automatically repossess if you don’t pay it, like a car loan, it doesn’t mean that they can’t get a judgement against you and garnish your wages or take the money from bank accounts. Just ignoring them was a VERY bad choice, as you now know.
If your friend’s cc det is high, bankruptcy might be an option – it isn’t for $2500.
If you have the cash on hand to pay off the debt you can likely settle your debt with them. I used to do this for a living for people…more often than not you can negotiate 45 to 55 cents on the dollar for what you owe. Once you settle the debt, contact the credit bureaus and have them remove the collection. The creditor won’t reactivate your account, however, once your credit is cleaned up you will be able to acquire new credit.
Congratulations on learning a lesson the hard way.
It appears the following things have occurred:
1) You were sued.
2) You lost, and a judgment was entered.
3) The judgment creditor found your bank account, and is in the process of collecting on the judgment from your bank.
my brother and i had a discussion about this at christmas. he works for a collection agency. he says what usually happens is if someone ignores them they will look into their assets. if they have enough assets they will go to court to get a freeze on the bank accts and if they win that will happen. i forget what else he said but if the assets are not worth it to the company they will not go to court because the lawyers fees are probably more than what they will get back. i know its something along those lines, i dont remember much because i drank heavily after we had the discussion
What you thought is wrong. Once they get a court judgment, they are garnish your bank accounts and salary. Shouldn’t have ignored it.
a judgement can attach a bank account