I need to know if a “Law Firm Engaged in Debt collection” can demand my checking account number, and if so, will the bank freeze my account?
I really need help fast and I don't know what to do; I'm hoping you can answer a question for me. I only have one more day left to make this decision and I'm running in circles trying to get it resolved. For the moment I need to know if a "Law Firm Engaged in Debt collection" can demand my checking account number, and if so, will the bank freeze my account? They were granted a judgement against me because again, I could not get an answer as to how I was to respond to that. I paid a debt relief company to help me but now that I really need them, I' can't reach them. I've been trying for almost two weeks, and just sit on hold, until I give up, sometimes more than hour. I live in Pennsylvania.
Thank you for consideration.
—Help in PA
The above questions and below answers with additional responses are from an email exchange with a reader yesterday.
The content covered may help future readers. If you have a related question you can post it in the comment section below, or better yet, start your own question and provide background right here.
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1:58 pm
Hi Help in PA,
If the creditor has a court judgment and you are at a place where their attorney is trying to enforce the judgment through levying your bank account, they will want to know about the accounts and even other assets you might have.
If they are demanding you answer these questions as part of a court filing where they are trying to discover your assets, you do have an obligation to participate. You also have rights. You should speak with local legal counsel and learn more.
I would suggest starting at naca.net and do a search in your state for experienced consumer attorneys.
I don’t know what you are referring to when you say you only have one more day to make this decision. What decision are you trying to make? Is there a court filing deadline or appearance required tomorrow?
Who is the debt firm you are working with?
If you would like to answer these questions, I may be able to get into a bit more details with you.
1:59 pm
Wow. Thank you so much for responding so quickly! I just spent another hour on hold with my debt relief company – which is Credit Solutions by the way – I feel like they deserted me! The decision I have to make is the Answer to Interrogatories requiring me to send them my checking account information. I wnat to make sure it’s legal first, and I am scared they will take all my money and I won’t be able to pay my bills. I don’t know how this works. Again, thank you for your time; I will go the the website you gave me right away. Do you think it wise to contact the low firm directly at this point? It is Apothaker and Associates.
2:03 pm
You have your work cut out for you.
Credit Solutions cannot or will not help you with the lawsuit as evidenced by their failure to date.
With a legal judgment, Apothaker is following their duty to their client to collect on it.
Which one of your creditors does Apothaker represent?
What is the balance of the judgment?
What amount of funds do you have to apply to this debt to avoid lien or levy?
What other debts do you have enrolled with Credit Solutions?
Have you had any dialogue at all with Apothaker? Has Credit Solutions?
If so, what outcome resulted from the communications?
Did they get default or summary judgment against you?
I want to assist you in getting the help and answers you need, but it would be beneficial to know the answers to the above in order to further help you explore your options.
Best,
2:05 pm
Hello, again. I have two accounts with Washington Mutual. the original amount was around $5,000. they are now trying to get almost $10,000! They actually made an offer way back when this started of around $1400 for each card. I was unable to settle at that time.I only have about $1000 saved right now. I finally talked to someone at Apothaker earlier this evening after my initial e-mail to you. I had to leave a message as the person with my case was gone for the day. Credit solutions had correspondence with them several times until I was sued. They did contact them about the judgement; they wanted $3,000 up front then $100.00 per month. So they did do some work but in the past week I have called and e-mailed repeatedly with no response. I was sort of counting on them to lead me in the right direction. I know, bad idea!!
Yes they did get a judgement against me.
Thanks again for your help.
2:15 pm
You live in PA so you cannot have your paycheck garnished for a debt like this.
Your bank accounts are exposed to levy, which is why they want the asset information.
Your real property, such as your home, can have a lien placed against it, which could later need to be handled.
Your biggest concern will be the bank levy.
You do need to participate in the court process and answer all that you are obligated to.
This is where an attorney will be key in helping you assess your obligations to the court and the information being sought by Apothaker.
If the accounts you mention below are the only two you have that need to be settled and you are managing your other bills ok, I am reluctant to suggest bankruptcy to put the matters to rest and alleviate your concern of a bank levy, as you would be filing bankruptcy over $10,000.00. If you can file chapter 7, you will be time barred from filing again for 8 years.
You should look into the option though, contact a local BK attorney through NACBA.org. That site will allow you to search by zip code for the closest resources to you. I do see the benefits of trying other methods first.
I do not know if you want to rely on Credit Solutions for the following. That will be up to you.
If you cannot settle the debt with a satisfactory amount right now, you should
Call Apothaker and work with what you have.
Suggest a payment of 1000.00 now and a monthly amount that is manageable for you thereafter. Do not agree to anything you cannot clearly be successful with paying each month.
Judgment debt can grow due to interest being tacked on at the allowable level for your state. If you are not settling the debt for a reduced balance, you must make every effort to get the payment agreement in writing with ZERO interest.
If you cannot commit to something at this time, and wish to avoid bankruptcy, you will need to consider living with low to no money in your checking or savings until you have saved up or can access the necessary money needed to settle the judgment.
Judgments can be negotiated and sometimes very favorably. Your best chance of success will likely not happen until Apothaker has exhausted themselves with legal process to collect from you i.e. having obtained court approval to levy your bank account around the 1st and/or the 15th of the month for several different months. This will give you time to save.
If you are still making payments to Credit Solutions where a portion of your payments are going to them, I would suggest that you need that money right now more than they do. You may even wish to seek a refund of any fees, which you can then apply to your debt.
Not a fun situation you’re in right now, but there is a light at the end of the tunnel no matter the direction you take.
Please let me know if I can assist you with anything further.
Best,
12:16 pm
Hello, again i’m sorry, my computer stopped working after your e-mail to me. I wanted to thank you; I have contacted the law firm, and am negotiating with them. Hopefully they will let me settle with an agreement I can handle. Thanks again for helping me clear my head!!
5:40 pm
OMG! I am going through the same thing with Apothaker and a debt settlement company.
We want to pay our debt, ran into some trouble and have made offers, but they won’t budge. We responded to the Interrogatories and even have the tracking information from Fed Ex to prove it arrived the day it was due – and they still submitted a brief for a Summary Judgement.
What do we do? If we could afford an attorney, we would have done it. I just want it to be over – and pay the best we can.
Any help would be appreciated.
I think – I would have to file a brief on our behalf as they have waived oral arguments.
Should I try contact the law firm also? Is it tooooo late?
Drowning in Pa
6:01 pm
Hi Drowning in PA,
You are in a slightly better position than the previous poster.
Please answer the following questions in reply so that I can better assist you:
Who is the creditor Apothaker is suing on behalf of?
Is their client a successor (a debt buyer) of your original creditor?
What is the amount you are being sued for?
What amount of money can you come up with to settle the account out of court?
Do you have other debts outstanding?
If so, how many accounts, what amounts and how long has it been since you paid on them?
Who is the debt settlement company you are working with?
It is not too late to gather all necessary details and pursue the most logical next step.
Best,
3:32 am
First, thanks for your help. I thought I replied, but it doesn’t look like it post(ed) so I will try again.
Who is the creditor Apothaker is suing on behalf of? Discover Card
Is their client a successor (a debt buyer) of your original creditor?
Their paperwork says “Discover Bank by its Servicing Agen DFS Services LLC
What is the amount you are being sued for? $5,435
What amount of money can you come up with to settle the account out of court? If we let other bills go for the month, about $1,000
Do you have other debts outstanding? Unfortunately. In addition to the mortgage, 1 car payment, school loans, and basic household bills, we still have 4 other credit cards to pay off.
If so, how many accounts, what amounts and how long has it been since you paid on them? 4 accounts; one is 20,000 plus now since it has not been paid on since April 2009, and the other 3 are between 3 and 4, 000.
Who is the debt settlement company you are working with?
American Financial, part of American Debt Settlement
It is with great embarrassment that I admit our poor choices. We are trying to make it right and have paid off 4 accounts. I don’t know how or when this became such a problem. But it did….. and now we need to work at making it right. It is just a very scary time being sued.
Thank you for any future suggestions.
7:03 pm
Thank you for the additional detail Cindy.
Here are my concerns:
You have about 30 thousand in additional debts outstanding with only 1 thousand available to address the current lawsuit. Not knowing how this one ends up in settlement or with longer term payment arrangements, I would ask you: What is your ability to come up with funds to address the other debts before you are sued on additional accounts?
Having not paid on the remaining accounts for about 18 months, your risks of being sued on the these are increasing from here.
Have you looked into how bankruptcy may be of benefit? If not, you should at minimum gather the facts about how filing may apply in your situation.
If you already know what you need to know about bankruptcy and are trying to avoid it, and are of a mind to manage one unpaid account crisis at a time, here is what you are up against:
You are being sued by your original creditor who has a reputation of settling, but not for the most favorable amounts. To nip this suit in the bud you will need to have about 60% of the balance as a lump sum settlement. If you cannot come up with the funds, you may have to agree to a longer term payment arrangement. It must be a monthly amount that you are 100% confident you can fulfill. You must make every effort to get the agreement with the law firm for 0% interest.
The issue with longer term payment arrangements is that they are generally going to suck up available funds that you had initially hoped you would be able to save each month in order to settle these accounts one by one. Your plan will then take longer which increases the odds you will be sued on one of the remaining accounts.
Can you identify any additional sources for coming up with money that will enable you to more aggressively tackle these settlements?
On the current lawsuit:
Stop it from progressing by setting up a settlement or payment arrangement.
Locate an attorney who can advise you on your next best step or perhaps identifying if you have a defensible position.
I do not know how much assistance you have received from Debt Settlement America thus far, but if it has progressed this far with their assistance, that fact would suggest not enough.
If you would like to contact me to drill into these concerns with more depth you can reach me through email to set up a time to speak: info@consumerrecoverynetwork.com
Best,
Michael
8:26 pm
I was just contacted by Ed Cash Law Firm, LLC and I had a credit card where the balance was $995.00 at one point. I was making payments (the minimum) and then they would hit me with the interest and it would bump me over the limit and then ding me with an over the limit fee. I kept trying to pay but it happened again and again. I then got into a situation where I couldn’t pay and now the credit card company (First Equity) who I don’t even think exist anymore turned it over to the law firm. I offered to make payments and they are not allowing me to do so. They are saying that I am refusing to pay my debt (over and over they said this) and I told them I am not refusing at all. That I was laid off, don’t have a job but when I get a job I will pay them but I need to make payments. Again, they said I was refusing to pay. I got so shaken up I hung up. They told me I have until 5:00 pm tomorrow to come up with the money. It is $1606.00…..I am totally willing to make payments but if they won’t accept that, what do I do? Help? I am panicking over this! I am a single mom trying to make ends meet and am deparately trying to find a job. Thank you
9:26 pm
Hi Kathleen,
The continued use by collectors of the phrase “you are refusing to pay” or “I will be noting the account as a refusal to pay” is an all too common collection tool. It worked enough to shake you up, but not enough to get you to pay. Perhaps the next person to try this would benefit from hearing you say “That’s just silly. I am not refusing to pay as evidenced by the fact I just said I am not and would be willing to make some type of payment arrangement. Its not a refusal to pay, but more the fact I cannot pay what you say I should. Given the fact that this call is being recorded on your end and would be discoverable through the legal process, were it to ever come to that, your collection pressure parlor trick would be recognized for what it is. Please hold on a minute while I get my recorder and record this conversation for my own protection”.
Rant off.
Here are my questions, which will help me understand more of your situation:
How long has the account gone unpaid?
Did you receive collection notices, either in the mail or over the phone prior to the one from the Cash firm?
If so, from who and approximately how long ago?
Is this the only delinquent account you are struggling with?
If not, what other types of accounts and amounts are you behind on?
Yes, you should be able to structure a payment plan for the account. It must be one that you know you can follow through on. If you cannot come to an agreeable payment plan, I would not suggest making any payment at all.
Some times when an account is newly placed with a firm, is when the most aggressive collection tactics are used. As the account goes unpaid for 30-60 days, the approach softens up a bit (not always). If this is the only debt you are dealing with, and assuming it is a newly placed debt, I would think waiting until the end of next month may produce a more productive result from any conversation you may have about a payment plan.
If you were to post a reply to my questions above, I may be able to respond with more specific detail.
Best,
Michael
8:24 pm
I’m trying to help my mother with a law suit from portfolio recovery ass and David Apothaker on behalf of capital one.
they are suing her for 1200 when her credit limit was only 300. she lost her job 2 years ago and could no longer pay on the card. now she lives on social security & a part time job. She is almost 70 years old and now she gets a summins from them. any advice will help me
thank you
8:41 pm
Hi Robin,
I would encourage you to speak with the attorney firm and find out what kind of payment arrangement can be set up to put the matter to rest.
How likely is it that your mother can come up with 75%-ish percent of the balance being sued for in order to settle the account? I realize it was only 300.00 when she stopped payments, but penalties were assessed adding to the balance and interest was likely being charged and has compounded for that period of time.
The amount may have been negotiated for less prior to being sued, but now the suit provides some leverage.
You can certainly look to a consumer advocate attorney to represent your mother in the suit, but the attorney will charge a retainer. That retainer may be more than the cost to settle the account.
Best of success in your efforts!