Pennsylvania Collections Questions & Answers

Q: I lost a Civil Law suit with about 141k awarded to the other person. Can they come after my 401K to collect?

3 Answers | Asked in Collections and Bankruptcy for Pennsylvania on
Answered on Mar 20, 2019
W. J. Winterstein Jr.'s answer
If your 401k is a "qualifying plan" (i.e., meets the requirements of Section 401(k) of the Tax Code), then your 401k plans should be exempt from execution.

Your judgment creditor may nonetheless attempt to levy on your 401(k) account, and you will need to file written objections to that execution, claiming the exemption, with the Sheriff to whom the writ of execution issued. Don't delay in the filing of objections, as I believe you have only ten days to do so.

Have you...

Q: I'm looking for the best course of action to collect on a judgement issued by a magesterial court in Cambria County.

1 Answer | Asked in Collections for Pennsylvania on
Answered on Mar 18, 2019
Peter N. Munsing's answer
if you don't want to consult a lawyer, then assuming the time for them to appeal has run, go for a writ of execution with a wage loss attachment if they are working--that way you get the money, not an item that then has to be sold. The Sheriff's office for the county should help you.

Q: Need him to collect the IRS refund for Deceased husband.

1 Answer | Asked in Collections and Tax Law for Pennsylvania on
Answered on Feb 20, 2019
Linda Simmons Campbell's answer
I suggest that she call the Taxpayer Advocate in her area. She can look up the number at the following link

https://www.irs.gov/advocate/local-taxpayer-advocate

They will help her submit the correct paperwork. If that does not work she can try a low income taxpayer clinic in her area but the taxpayer advocate will probably be quicker.

Q: When our son has no job and has been served a summons for debt collection, what does he have to do?

1 Answer | Asked in Collections for Pennsylvania on
Answered on Feb 16, 2019
Cary B. Hall's answer
First, he must first be officially served with the lawsuit. If this "service of process" is not satisfactorily obtained, then NOTHING happens: the court cannot enter a judgment against him without proper notice of the lawsuit. Some folks successfully dodge adverse judgments by ducking service of the lawsuit from the beginning.

Best of luck to him.

Q: PA-What's the Tax Penalty % for "Early W/Draw" of a Pension Plan? Also with "E W/D" can the IRS claim $ owed 4 yrs prior

1 Answer | Asked in Bankruptcy, Tax Law, Collections and Gov & Administrative Law for Pennsylvania on
Answered on Jan 30, 2019
Timothy Denison's answer
The penalty varies from plan to plan. You can check with the plan administrator to determine exact amount. It is unlikely that the IRS is even aware of the pension plan, do very doubtful that they will be able to seize money.

Q: If I have already made payment arrangements with portfolio recovery, Do I still have to attend a conciliation meeting?

1 Answer | Asked in Collections for Pennsylvania on
Answered on Dec 31, 2018
Cary B. Hall's answer
You should contact the court to inquire. It could very well be that Portfolio Recovery has already informed the court of the agreement, but maybe not. You can also ask Portfolio Recovery to cancel the court proceedings -- something things slip through the cracks. But short of the court telling you that the conciliation is canceled, you should definitely attend. In fact, if you attend and Portfolio Recovery doesn't, they'll likely dismiss the suit against you outright.

Best of luck...

Q: Arbitration hearing or Judgement Issue?

1 Answer | Asked in Consumer Law, Contracts, Business Law and Collections for Pennsylvania on
Answered on Dec 7, 2018
Cary B. Hall's answer
The problem may be your "assumptions." I suggest contacting the Delaware County Bar Association for an attorney referral, and then sit down with him/her and going over everything. Knowledge is power, y'know?

Best of luck to you.

Q: Being sued by portfolio Recovery Associates for a bad debt. Not working, can't afford lawyer what now?

1 Answer | Asked in Consumer Law and Collections for Pennsylvania on
Answered on Oct 28, 2018
Peter N. Munsing's answer
Do you agree on the amount? Contact legal services. But don't let it go to default otherwise other charges may be added.

As to the debt, can Portfolio Recover show that they were "assigned" the debt? Anyone can say they were--can they prove it?

Q: Do I have to appear at a credit card deposition?

1 Answer | Asked in Collections for Pennsylvania on
Answered on Oct 26, 2018
Cary B. Hall's answer
Pretty impossible to answer your question without more context about your situation. I'll presume, however, that you've been sued by a credit card company for a bad debt, and the credit card company has scheduled your deposition in a civil case against you.

No, you don't have to appear -- but if you don't, there will be consequences you might want to avoid. If you don't appear, the attorney for the credit card company can file a motion with the court asking the court to order your...

Q: I received a personal loan with no written contract other than. .pay me when you can" I've been making monthly payments

1 Answer | Asked in Collections for Pennsylvania on
Answered on Oct 16, 2018
Cary B. Hall's answer
Yes, a case that you owe her money, but not really that you're overdue on payments. Still, I can see a magisterial district judge asking about what the verbal arrangement was, and entering a judgment anyway on the full amount due. The lower court won't craft a new contract for you with distinct payment terms, unfortunately for you; it'll just enter a judgment in a numerical amount. Best advice is to try to work it out with her, and get *those* terms in writing.

Best of luck to you.

Q: A company has gone out of business, and a shipping company turned an outstanding fee over to a collection agency.

1 Answer | Asked in Collections for Pennsylvania on
Answered on Oct 9, 2018
Cary B. Hall's answer
I suppose it depends on what the delivery terms were, right? Unless UPS Freight has some sort of documentation that says *you* are responsible for the shipping costs, then they can't very well assert a valid claim. Tell them that.

Best of luck to you.

Q: I was widowed last year and my husband was paying on 3 tractors/lawnmowers. Am I responsible for making the payments?

1 Answer | Asked in Collections for Pennsylvania on
Answered on Aug 15, 2018
Cary B. Hall's answer
I am sorry to hear about your husband.

It depends how the equipment was titled. Are they in his name alone? If so, you are not responsible for the debt -- but the equipment company can almost surely come repossession the equipment for nonpayment of the debt, so consider that consequence for nonpayment. If the debt was established in both of your names, then yes, you would still be individually responsible for the debts following your husband's death.

If you no longer need...

Q: Is the case over or do I still need to do something?

1 Answer | Asked in Consumer Law and Collections for Pennsylvania on
Answered on Jul 31, 2018
Cary B. Hall's answer
Call the Prothonotary of your county's Court of Common Pleas and ask them where the case is procedurally. Every county does it a little bit differently, so go straight to the source and find out.

Best of luck to you.

Q: Student Loan Question

1 Answer | Asked in Tax Law and Collections for Pennsylvania on
Answered on Jul 25, 2018
Peter N. Munsing's answer
Your wife is obligated to the holder in due course of the note. You want to make sure you keep a log with date, time, identity of the person you speak with, and generally conduct things via snail mail. Yes hard copy and stamps. You save a copy of everything you get.

You get something from them, you save the envelope.

You send it you make a copy.

1. Whoever asks you for money--and you may run into "debt servicers " like AES or National Collegiate Trust--very often has...

Q: Car was repossessed less than 30 days ago and the towing co wants 125.00 to retrieve my personal property. Is this lega?

1 Answer | Asked in Collections for Pennsylvania on
Answered on Jul 24, 2018
Peter N. Munsing's answer
If you didn't authorize the tow, they can't keep your property. File a complaint with the Department of Transportation and notify whoever hired them that if they don't return your possessions you will file a complaint with the attorney generals office.

Q: can a joint spousal checking account in PA be frozen if only one person owes the debt?

2 Answers | Asked in Collections for Pennsylvania on
Answered on Jul 17, 2018
Cary B. Hall's answer
It really shouldn't be. Property owned by a husband and wife is a special kind of ownership in Pennsylvania known as a tenancy-by-the-entireties. This includes money held in a joint checking account in the names of both husband and wife. A creditor of just one spouse cannot seize property owned by both spouses held in tenancies-by-the entireties. So the answer is no -- that joint checking account shouldn't be frozen. And if it is, you would have this defense to release any attachment of...

Q: I bought a car at a buy here pay here, i can't afford it anymore am I responsible for the loan on a voluntary repo?

2 Answers | Asked in Contracts, Products Liability and Collections for Pennsylvania on
Answered on Jun 20, 2018
Elizabeth Tarasi's answer
Yes. They generally reposes the car, sell it at an auction and get what they can for the car and hold you responsible to pay the difference.

Q: If the original lender of a private student loan forgives it and it is sent collections, can you discharge in bankruptcy

2 Answers | Asked in Bankruptcy and Collections for Pennsylvania on
Answered on Jun 15, 2018
Cristina M. Lipan's answer
The private student loan may be dischargeable under hardship if you have been found disabled by social security. You will need an attorney for that.

Q: out of work, am I eligible to file for chapter 13? I was told No is that correct? Ive been sick but can work

2 Answers | Asked in Bankruptcy, Foreclosure and Collections for Pennsylvania on
Answered on May 23, 2018
Stuart Nachbar's answer
To qualify for a chapter 13, pursuant to the statute, you must have regular income. It is a requirement of a chapter 13 that you have a regular steady income.

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