Expert: Jason Shear, Esq. - 11/3/2008

Question
I live in Pennsylvania and have a hearing on Friday for a credit card debt about 3000$.  I have not paid on it for at least a year.  What are some options I can go into court with?  I don't have the pay off amount.  Can i request reduced payments?  I read they cannot attach my wages, but can my checking account.  If its a joint account what about my spouse money?

Answer
Sherri:

Hope all is well.  Yes you are correct, in Pennsylvania your wages can not be garnished on a debt arising from a consumer credit transaction.  However, your bank account could be frozen if they obtain a judgment.

Some issues you can raise when you go to Court is to make them prove that all the charges they are claiming are legal.  Make them provide the original contract, receipts and statements.  You ask if you can request reduced payments.  The attorney for the alleged creditor is not obligated to accept a settlement.  However, many will accept a settlement if they know the debt will be paid without the collection attorney having to do the work of enforcing a judgment.  Before agreeing to any settlement or admitting you owe this debt, first see what kind of documents they can produce proving you owe this debt.

If they obtain a judgment against you they can freeze one half of the amount that is in your joint account if PA law is the same as NY in that respect.  To be safe, keep your funds in an account in  your husbands name, under his social security number only.  If you need to access this account have him get an extra ATM card or debit card that you can use.  If you have money in savings that you are keeping for retirement, move the legal maximum amount into an IRA.  Check first if PA has the same law as NY that a regular or Roth IRA can not be taken to enforce a judgment.  

Good luck.  If you have any follow up questions or any questions about what I wrote please do not hesitate to call.

Jason Shear, Esq.
NY Consumer Lawyer
(716) 566-8988