Refusal to Pay, Debt Collection Agency and Bank Account Information
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.
Can a debt collector demand my checking account number and freeze my bank account?
—Help in PA
The above debt collection question and below comments with additional responses are from an email exchange with a reader yesterday.
State law limits what amount of money can be levied or taken from your bank account in order to pay a judgment. State law further protects you from heavy wage garnishment, and from a debt collector seizing some of your personal stuff in order to satisfy a judgment.
Anyone with a related question can post it in the comment for feedback. Be specific with what you have going on. It helps when you include:
- The name of the credit or debt buyer involved.
- The name of the collection agency involved if different than above.
- The state you live in.
- If there is a judgment or an active court case.
- What your goals are for resolving the debt.
Including those details (use an anonymous screen name if you like), often helps me offer more detailed feedback to readers.
If you want to talk offline you can reach me at 800-939-8357, choose option 2.
About Michael BoveeMichael started CRN in 2004 with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry. He is available to speak with you about your financial struggle and helps people resolve their debt problems daily.
I’m in ny, I owe 5600 on a charged off account, I have 1500 in my bank account, can that be frozen or taken?
Only if you have been sued and a judgment entered in court.
Who is the creditor?
When did you stop paying?
Portforlio Credit Recovery has frozen my husband’s bank account with Chase. Chase says the judgement is for $2200 but they’re holding over $4000 causing his account to be negative. We have rent and other bills due. We are in Florida, what recourse do we have?
You typically have to contest any of this with the court, as they are the ones that sign off on the bank levy. It can take a couple of days for the freeze to thaw and the money – that is more than what the bank levy listed – to be available.
We also found out that the name on the order is incorrect. The judgement is for Michaela instead of Michael A. The bank says the SSN matches though. Who should he raise that issue to? The bank or the collector?
I would raise any issues with the court if it were me.
I live in pa and wondering if I have a $2,500 judgement against me and I only have $200 dollars in the bank can they still freeze my account and if they do how long can they freeze the account for ? Secondly can they withdraw my account for the remaining $2,300 dollars leaving me with a negative total account and satisfying their collection efforts for judgement ? If they take nothing how long can my account be frozen ?
Pennsylvania has no exemption for bank accounts, but you cannot have your wages garnished.
Talk to an experienced debt collection defense attorney in PA and get your questions about how long your account can be frozen, as I am not sure. They should not be able to take in excess of what you have on deposit.
Hi – We are in PA and our bank accounts were frozen by a civil judgment from a past landlord who sued us for rent for the two months he was unable to rent the property and for repairs and carpet cleaning. He also kept our security deposit. We were also sued for his attorney fees and legal fees. The judge awarded him $3008. We have made some payments but other financial demands caused us to not be able to continue. They have now frozen our bank accounts and have over $1000. Can they take our entire bank account. My husband’s paycheck is direct deposited and that money was to pay our rent. While I understand it is legal – Can they take it all.
You cannot garnish wages in Pennsylvania, but you can levy bank accounts and lien property. There is a small $300 exemption that you can petition the court to be returned to you, but that has to cover some other property too, so it may not be effective fro you.
In PA it is often better for people with judgments against them to take steps to keep their money out of a bank that is associated with their own name and social security number, until the judgment is resolved.
Is the judgment against both of you, or just one?
I defaulted (I think, back in 2009 due to lost job and a baby) on a credit card w a balance of $800 to Capital One. Patenaude and Felix, APc has since taken over the debt. Last week when I looked at my bank account there was a court ordered levy for $2800.00. I had no knowledge of this debt and would think that it was out of statue, also, was never served anything… What if any options do I have?
Are you in California?
If you were never served, or knew about the lawsuit, you have at least a little bit of a chance to get the case vacated. Let me know if you are interested in pursuing that and I can email you some contact details of an attorney in CA that regularly helps with that sorta thing.
Yes, I am run California. As I read on, the bank account garnished is also in my husband’s name however he had nothing to do with the debt… I would like the name of someone in Ca who deals with this stuff at your convenience. Thank you and I hope you have a great day!
I sent you an email with the info you will want to follow up on. Let me know how the situation develops.
Hi Michael,
I know that in PA wages cannot be garnished for a civil judgement. Can a creditor from a civil judgement garnish your bank account? How could I prevent this?
The creditor has already threatened to tag property & take what he wants.
Thank you.
You have little to no bank account protections in PA. Check out this video about delaying judgment collections.
I found out I had my bank account frozen because of a judgement from discover. ( Long ago debt) The attorney is trying to unfreeze it because he didn’t know it was a joint account, the bank told him it was only mine, but my spouse is not the one at fault. The bank is having a hard time faxing over info to the attorney proving that the account is a joint account. I gave them the fax number. So I faxed over a bank statement to attorney but that wasn’t good enough because it had the word “or” between our names on statement. My question is will my husband’s money be frozen aso and future direct deposits? I want to make arrangements to pay for the debt do I talk to the attorney who is handling the debt? The attorney wasn’t real clear as to what to do,. Or do I have to call the court house to get this resolved?
Who is the collection law form involved?
What state are you in?
Swicker & Associates, I’m in Pa
Talk to one of the attorneys in PA that I am sending you contact details for. Most offer a no cost initial consult and can readily answer the question about your joint account being levied.
Also found out that my husband’s direct deposits will be available. And the bank said it is a joint account. Attorney said i can make arrangements with the collection after account is unfrozen
How much is owed on the Discover judgment?
6700.00.
The bank account is unfrozen but found out that there is a levy on my property. Do I have to contact a lawyer or can I continue to work with the collection agency referred to me by the plaintiff’s attorney? I already talked to her & she is giving me little time to come up with the balance. As far as making payments she asked for way too much a month! I read that I could go to the clerk of court to fill out a form with amount I can afford to pay & that they will send that to the creditor. Is that true? I’m thinking about withdrawing my retirement to pay off the balance. I’m worried about the time frame for it being settled. I don’t want to lose my house. Thank you for helping.
Check out this video I did about bank levies and liens.
You do not need an attorney to help you resolve the Discover judgment with Zwicker. You can often negotiate a lower lump sum pay off. I have a page up about negotiating with Zwicker and Associates.
You cannot have your wages garnished in Pennsylvania. Setting up a monthly payment through the court is a reality, but I would opt for saving up half-ish in order to settle.
They have the lien on your home as a guarantee they will eventually get paid, and not to take your home from you.
I hear you on tapping into retirement money in order to tackle a stressful situation like this, but try to avoid that if you can. Try to pull the money together a different way, and over a period of time if necessary.
I’m not sure if my property is levied now. I think they referred to my bank as ” property”. I read the page on Zwicker. They said I owe 8,000 & told me they would bring it down to 7000. if I paid in full. Or they will accept 732.00 payment a month. I can only afford 100.00. Do I have to agree with what they want or will they eventually come to terms with what I am able to pay?
You do not have to agree to the amount they want you to pay each month. But you cannot, per say, force them to take $100 a month.
Keep your name off bank accounts and know that a property lien is common. Come up with a strategy to get half or more of the balance owed and negotiate a pay off that you get documented by them first before you pay. It could happen next month or next year.
My wife has a summary judgement against her for a credit debt from 2008 before we were married. I remember back in 2010 or 2011 she received letters from a debt collection agency, Mapother and Mapother, stating they were trying to collect and I disputed the charges and whether they actually where legal owners of the debt and we heard nothing more until now.
Then a summary judgement was awarded in Lexington Kentucky to a different debt collector and we never received anything about until two weeks ago. We received the order for summary judgement dated June 28, 2013 from debt collector from Louisville Kentucky named Fenton and McGarvey and then yesterday we received a wage garnishment. My wife does not work and left the business the wage garnishment was sent to over 4 years ago. The original debt shows $4500 but they are claiming she now owes $12000 after interest fees and etc.
My big question is if they can levy our joint bank account even if she incurred the debt before our marriage and she has not contributed to the account for over 4 years. Should I remove her name from the joint checking account or close the account while I fight this action and try to vacate the summary judgement? How would be the best way to fight this debt?
Thanks.
Jeff
If you can get her removed from the account it will prevent the next bank levy. Opening a new account at the same, or a different bank, can work well too (just in your name).
Who is the named plaintiff on the lawsuit? Who does Fenton and McGarvey say they work for now?
Kentucky caps judgment interest. I cannot see how they got from the balance then, to what they assert is owed now.
What is your goal for resolving the judgment?
I live in NYC and have a lot of old credit card debt. All have been sold to law firms & are over the statute of limitations, and only the one I’m paying off currently was actually served according to law. I did not receive any notice of the other 2 lawsuits until recently (several years after they was filed, allegedly in 2010), but unfortunately i never went to court on any of them.
My bank account was frozen from one of them, so i had to negotiate a payment plan of $100/mos., even though that is beyond what i can afford. Ive been paying it for over a year. The firm would not take less, even after explaining my financial hardships.
Now I rec’d another Notice to Judgement debtor re: a different debt stating I owe $3,744.29 & if not paid they may freeze my account.
I cannot afford to pay ANOTHER $100/mos., but don’t know how to negotiate with them for less. I can offer a lump sum of $1000 to settle but not anymore than that. Will they accept that little? How do I do this & what if they won’t accept? Also, what about having to pay taxes on remaining bal. & damage to my credit? Where am I s opposed to get all this money from?
Would appreciate any help you can provide.
Who is the collection law firm you are paying the $100 a month to, and who are they collecting for (name of the plaintiff that sued)?
Who is the law firm trying to collect on the new balance, and who are they working for? You said you were not sued properly on this one. Post some more details on what you meant by that.
Here is an article about paying taxes after you settle a debt for less. Do not let tax implications side track you from resolving this stuff. If you do end up owing (many people don’t), it is better than the alternative.
The name of the credit or debt buyer involved.
Credit Acceptance Corporation
The name of the collection agency involved if different than above.
Represented by Law Offices of Frederic I, Weinberg & Associates
The state you live in.
Pennsylvania
If there is a judgment or an active court case.
There is a judgement against me, for $6,612.
What your goals are for resolving the debt.
I would love to settle the debt, but I don’t know what my next steps are. I’m worried about them garnishing my bank account. I live pretty much paycheck to paycheck as it is, if they froze my account I don’t know what I would do to live. I don’t know if I should contact them to work out a payment plan, or if they’ll just take my account info and freeze my account. I am leaning toward bankruptcy, but obviously, that’ll take time, and I’m afraid any money I would be able to put toward filing would be put on hold. I’ve heard horror stories in PA where people woke up one day to find their account was put on hold without notice. I’ve never given this place my account information, do they legally have to tell you they’re freezing the account, or can they just do it?
You can indeed wake up with funds frozen in your bank account without any warning. You can prevent that by working out a settlement or a payment arrangement that they agree to.
How old is the judgment?
Are you in a position to fund a settlement offer for half or more of what is owed? If not, when can you be ready?
The opposite is true about filing bankruptcy. The moment you file all collections of any type must stop in its tracks. That includes judgments. The process to discharge in a 7, or repayment in a 13, does require a formal process that takes varying amounts of time. But the protection from creditors is immediate.
Good Afternoon Michael,
Thank you so much for all of the help that you offer to all of us. Here is my question, I would really appreciate it if you could take a moment to reply. I live in PA and recently discovered a medical bill in the amount of $134 on my credit report, when I called the collection agency, CBJ Credit Recovery to pay them (the full amount) they said they couldn’t take my payment because it’s been too long, 6 years and I would have to wait another year for the account to come off my report. I don’t understand this. When I’m willing to pay. Is this correct? Do I have any options? I don’t want to wait another year. Mind you, I never knew it was there previously.
Thank you!
Corie
On any given day it is more than a little odd to have a debt collector refuse money. My guess is that the debt collection agency does not have the account so could not take your money. The debt collector did a poor job of telling you what the situation is and what to do next.
I see your options as:
1. Contact the original service provider and find out the status of the account in their system and follow the trail of crumbs from there.
2. Dispute the entry from CBJ Credit Recovery off your credit report.
If I am right about them not be associated with the account any longer, your dispute will likely result in the credit report removal.
Let me know what happens with your efforts.
Located in PA. I hve a judgement from Capital One. Attorney fir is Weingberg. That have from my bank account. By law the must return 300 to me. 900 will go to the attorney debt collector. How long can they freeze my account.? What no happens next? I can not believe we life in a county that allows this to happen to people, leaving them with no money to buy food, pay mortgage or utilities etc. Our economy crisis, job loss etc put me and many others in this position. They have made me feel like a criminal
Call and ask your bank when you will be able to deposit money in the account again without them being able to levy the money.
If the amount they took does not satisfy the judgment they can hit your bank again later. How much is the total amount owed on the judgment?
If you still owe a sizable amount you will want to look at banking and bill pay alternatives until you resolve the judgment.
Sorry for the typos! The balance is now around 2300.
The attorney said after this phase they will work with me. So we ll see. When I ask the bank when the freeze will be lifted they rudely stated when the courts tell them to lift it. What other alternatives are there? They make me feel like a criminal. People fall on hard times and this us how they are helped?
It can take a few weeks for the process to take its course. Many collection law firms are going to work with you to repay the rest of what you owe after this. Your wages are protected in PA, so that often leaves bank accounts as the most immediate way to get paid. It is, unfortunately, a normal element of debt collections.
If it were me, I would look at ways to offer them a lump sum settlement for less than what is left owing. But if that is not a possibility, making a scheduled monthly payment arrangement with them will allow you to continue to bank as you normally would.
Hello – I received on 2/26/16 court papers stating that Weltman Weinberg and Reis (Discover) received a judgment against me on 1-29-16 and that are garnishing my Huntington bank account in excess of $425.00 – I called Weltman and of course the attorney that is handling my account was out and the lady that I spoke with said did they garnish your account? I said I didn’t think so I just got the paperwork that day, so I called my bank and that day 2/26/16 they did, and only left $425 – they took $1072 plus a processing fee of $75. The bank said that the received the garnishment that day and they took the $1072 and also the $75 was Weltman court costs. My question is can they do this over and over until the entire amout owed is satisfied? I still owe Discover roughly a additional $1200 -I will try to set up payments on the remainder however, I don’t want them to do this again next week?? Should I close that account? once last question, how do they get account information? I live in ohio.
Your bank account is at risk for further levies until the judgment is satisfied unless you qualify for exemptions from levy in your state. You do have a decent chance of setting up a payment plan on the remainder that is owed so call and check to see what they are willing to do.
They may not have had your bank account information. Debt collection attorneys will get an order from the court to allow the bank levy and then submit that to major banks in your state, or in your area. They can hit their mark that way.
Hi, my partner’s car was repossessed due to being behind in payments. They took the car on Feb 16 and we received a letter dated Feb 18 which states the 15 day law. The problem is that he can’t get any answers from anyone when he calls. He’ll call multiple times a day, has left multiple voicemails on the attorney’s phone who he is being directed to speak with and whose name is on this letter. The attorney has not called back. What should we do? Should we hire an attorney? What options do we have if no one will speak to him. We hope to reinstate the loan. Thanks for any help. also, we’re in pittsburgh, pa. thank you!
Who is the loan through, or who is servicing it?
Hi my bank account was frozen due to in unpaid account that I had over ten years ago I have slowly been trying to rebuild my credit and must admit that I haven’t made the best choices regarding my credit in the past the number I was given from the bank isn’t a working number and no one can tell me what to do in this situation except wait I recently moved from one state to anothe and rent and bills is a must especially rent. I have a lot of debt but no new debt in the past six years not sure what to do about this
Ask your bank for a copy of the order from the court. Look up your name in that courts records and post an update with the details about the judgment you find there.
Name of plaintiff.
Name of collection law firm that handled the case.
Judgment amount.
What state you are in.
I can offer more helpful feedback when you post those details.
Hi Michael, you give great advice–I hope you can help me! My husband was having his wages garnished after a default judgment was filed years ago from Midland Funding/Pressler & Pressler here in NJ. Though the debt was never verified, they forged his signature on a certified mail form which is how the default judgment was entered (he never received notice to appear). Anyway, his office received a letter from the Superior Court Officer to whom he was paying the wage garnishments “to please stop remitting and refund any monies you have on hand to the defendant” along with a copy of the Court Officer’s notice to the Special Civil Part Clerk, informing her, “Please note the above mentioned wage garnishment has been closed in our office. Please stop the deductions.” Any wage garnishments his office had sent were returned back, the checks uncashed–this was back in Feb. 2012. Fast forward to this week–Pressler & Pressler sends a notice to his office: “Inquiry is made as to your compliance with the Court Order for the Wage Execution served upon your firm…etc.” and a bunch of questions about the last remittance, balance due, etc. This is not the first time they have started and stopped, and we fear they are trying to add on more interest each time they do this? Our biggest fear is that this will destroy his newly repaired credit score. What can we do? Please help!
I would contact an experienced debt collection defense attorney in New Jersey and get their feedback. Something is wonky with your file in the courts. Talk to them about the service of process signature too.
Post the name of a nearby large city and I can email you contact details to any attorneys I know of in the area that have the experience you need (few lawyers specialize in debt defense).
Hi, thank you so much for your prompt response! If you know of anyone in Monmouth County, NJ, near Freehold, that would great. Many, many thanks!!
I am a resident of South Carolina, a graduate student on a stipend. Defaulted on 15K of student loans which my cosigner said was paid off to Citibank but cannot verify since she has passed away now. Discover bank claims to have purchased that account and claims it was never paid off and is suing me, using a collection agency. I have a bank account where my direct deposit funds go from my stipend. Apart from that, I rent, have an old car and my only asset is that direct deposit account.
There is no mention of Discover Student Loans in my credit report and I do have a line in there showing the Citibank account with a balance of 0 but open.
Can a judgment be used to levy my bank account despite the fact that it only holds direct deposit funds from my wages which are exempt from garnishment by SC law? What can I do to protect myself in case I lose the case?
If you do not claim a homestead exemption in South Carolina you do have a cash exemption from judgment creditors, and up to several thousand dollars. I would run your entire scenario, especially the part about this have potentially already been paid, by an experienced ebt collection defense attorney in SC. I can email you contact details to some that I know of if you like?
Sure that would be great. I don’t have a lot of money, obviously, so an inexpensive one would be ideal
What is the name of a large city nearest you?
I have a judgement against me in New York. I set up a payment plan in 2014 and was paying it then fell 4 months behind. They sent me a letter and I went to the lawyer’s office and set up another payment plan. Since I am actively paying, my tax return isn’t at risk for interception is it? Also, can they place a levy on my bank account after my refund is deposited? I know if it’s under a certain amount they can’t freeze it but I’m expecting at least $4k back. Please help!
Is your agreement with the collection firm in writing?
How long have your monthly payments been back on track?
Roughly how much is still owed on the judgment?
I recently found out that my bank account has a levy on it, due to a judgement from the Weltman and Reis group ( Discover card). I was aware of the judgement, but was never served any papers regarding the levy, nor have I received anything regarding the interrogatories. Is this legal? And can you recommend any decent lawyers in the Allentown , Bethlehem, Pa area? Thanks
How long ago were you sued? What is the amount of the judgment?
I am sending you email to an experienced debt defense attorney you can call and consult with.
My bank recently took 1200 from my personal bank account because I am 180 days behind on my business credit card payment.that was linked to my business checking account, not my personal checking account, is this legal?.
What is the name of the bank?
Was your business a dba or sole proprietor? In not, what type of structure are you set up with?
Bank of America, web based business sole proprietor
The sole proprietor designation will often be why you are not protected from what happened with your accounts. I cover business accounts in more detail here: https://consumerrecoverynetwork.com/question/settle-business-credit-cards-loans-personal-guarantee/
How much is the balance still owed on your BofA card?
My bank account was frozen on 11/30/15 by Federated Law Group for a debt totaling $6000. I called them immediately and was able to set up a payment plan for $1000 per month. I opened a new checking account and sent them a certified check for the initial payment, which they will receive today (12/3). The agreement states that they will lift the levy after this initial payment is received. Once they give this information to the courts, how long does it typically take for the account to be made available again? Thank you for your help!
The time it can take to release your account can vary. I have seen that process take a couple of weeks, and in some instances a couple days.
You may want to ask a seasoned customer service manager with your bank what they have seen in similar situations.
Thank for the information. The levy was released yesterday, but I’m still showing 3 charges that went to “legal order, LTS.” These charges total more than what was owed to the collection company. Are these funds just placed on hold by the bank, placed in a escrow account, or sent directly to the creditor? I have tried contacting the bank, but no one seems to be able to give me a straight answer. If these funds were sent directly to the creditor, then they now have over $1500 more than what I owed them. Thanks again!
I just had a levy on my and my husbands checking account. It was from Zwicker and Associates PC out of Andover, MA on behalf of American Express/Centurion Bank. In May 2014, I had a lawyer that got a legal agreement to go through our chancery court here in Knoxville, TN with them agreeing that they would accept $250 per month until the balance of $26,935.93 is paid to them. I had been diligent in paying them although there were two months the payment was about 7 to 10 days late and all of a sudden this levy is placed on my checking, and daughters savings accounts draining all of it, $3,007.91! I can’t get my lawyer to call me back and I only have until November 18 to get a release of levy. Questions, how do I and can I get a release of levy? and they have sent a form for execution and garnishment but I don’t work outside the home and have not income of my own, so what can they take or do moving forward? When I call Zwicker ad Asssociates they refuse to talk to me and say they will only talk to my lawyer that handled the original agreement that went through the court in May 2014, the one I can’t get to return my calls! HELP! We really need some of what has been levyed to pay our mortgage, utilities and car payment. I can’t believe they would do this over payments being a few days late twice! Also how do I keep them from doing this again? If they will reach a new agreement with me on repayment or settle on a set amount and consider it paid or charged off for that amount, can they levy my checking again for no reason? What proof do they have to show the court to get the judgement in the first place? I didn’t get a letter or anything saying this was going to happen, just went to get gas last Monday and found out my account had been drained dry. PLEASE ANY HELP IS APPRECIATED.
The bank freeze of your money is due to the judgment they have. You can protect up to 10k of cash in a bank account in Tennessee, but that exemption total has to apply to your vehicle and household goods exemption too.
You may want to contact the court directly and find out what you can file yourself in order to contest the levy, or get a full or partial release. If your attorney will not return your calls, and you want legal advice, you may have to call another. If you post the name of a nearby large city I can likely email you contact details to any in the area that I know have the experience you need.
The proof they needed to show the court in order to get the judgment in the first place is an issue that has likely passed you by. The time to challenge that was prior to the judgment being entered, or any consent or stipulation you may have entered.
You can settle with a debt collector like Zwicker, even when they have a judgment and freeze your bank accounts. You will want a lump sum available, and will realistically want to target 50% of today’s balance as a floor.
That is one way to keep this from happening.
Your bank accounts are at risk moving forward if your name is on them. Taking your name off of the accounts would prevent this from happening.
You could look into chapter 7 bankruptcy as a means to legally put a stop to any other collections for this account, where you would also legally eliminate the judgment balance.
Hello-
My husband & I were married in July of this year. We signed a prenup & had it notarized with clauses that any debt or assets prior to the marriage would remain our own and that we would determine future items.
I added him to my checking account once we were married. Also- my income is significantly more than his and joint bills are in my name because he moved into the home that I owned before the marriage. I guess you could say that his joining my account was more of convenience but now I learned was not.
Less than 4 months into our marriage, a hold was placed on money in our joint checking for a large sum of money (over $6,000) based on a garnishment /lien for Discover credit card that my husband owed from over 6 or 7 years ago when he lived in another state. I only learned from calling my bank what it was for.
We have not received anything from Discover, a lawyer or the courts. But I have confirmed it garnishment summons against our joint account, though he is the sole debtor for this old credit card. I’m shocked and see so many things wrong.
How can they hold money from our joint account-when actually none of the debt is mine? And none of the money in the account belongs to my husband based on our prenup and the fact he barely makes enough money to cover his bills? The money in the account is mine and is needed for my mortgage and other bills, including my son’s tuition! Further, isn’t this beyond the statute of limitations? Shouldn’t he have been served papers or something to be put on notice of this and that there was a judgment?
What are our options at this point since the bank is holding my money? Are there grounds for exempt this money from garnishment/lien considering it is not his money in the joint account and I’m not responsible for the debt? {I do have substantial evidence of my direct deposits from my employer that substantiate most of the balance and the fact I held the account for 15 years before marriage. Further the balance had the noted amount before our marriage and we had a prenup.]
Should we attempt to settle or only after addressing the garnishment first? I fear that they may be less likely considering my assets have been brought into the picture but I have many recurring bills that need to be paid with that money.
Thank you for any assistance and information. Melissa (from Virginia)
The checking account is fair game when your husbands name and social became attached to it. The prenup will not prevent that bank account levy, and likely would not allow you any recourse against Discover. You could be wasting money and energy trying to get the frozen money back.
You can still settle with Discover, but will likely have to deal with the attorney handling the case.
How much did the bank take from your account?
How much was the judgment for and when was it entered in the court?
They have an administrative hold on over $6,000.
I don’t know when a judgment was filed. We have never received anything. I only know that the administrative hold was placed based on a garnishment /lien about a week ago. but I don’t know about anything else. The information I have received came from the bank then from going to the courthouse. My husband has never been served and the address on the garnishment is not correct,
I’m surprised that you say I’m wasting time and effort regarding the hold. My husband has only been on my account for a few months and I have support that the majority of the deposits are mine. The debt is not mine and existed before marriage.
Melissa
I would encourage you to run the whole thing by an experienced debt collection defense attorney. Post the name of a larger city near you and I will email contact details to any I know of in the area that offer a no cost consult. My main concern is that he was sued and never knew of any of this. Sometimes the judgment can be unwound in this type of situation.
With your husband on the account the money on deposit is seen as his property. Talk to the attorney about this too.
Michael- Thank you for your responsiveness. The closest big city is Richmond, Virginia, approximately 60 miles. Washington, DC is also about the same distance but it may be best to stick with a lawyer in Virginia but you may know best if there is a difference.
My husband lived with me close to a year before marriage and I can assure you that we have never received any type of summons or legal notice to the home. In fact, if I had known he had this issue before I would have ensured he took care of it. I have stellar credit and a job position that requires such. I would not have risked that with such actions being taken on my husband or my soon to be husband if that were the date of such judgment.
I don’t know the details of it got to this point–but based on discussion with my husband it appears this relates to a credit card from approx. 6-7 years ago when he lived in North Carolina and was unemployed. Since then he moved several times for employment and fast forward.
I don’t believe in foregoing what is rightfully your debt or obligation, but I firmly believe freezing my assets in this situation is completely wrong. Melissa
I found one in Richmond and one covering VA and DC, both with the experience you want. I sent full contact information to you in an email. Please let me know how things progress.
Hello Michael, I have a judgment against me from New Jersey which included bank levy & wage garnishment. I moved to Pennsylvania four years ago. I understand that my wages can’t be garnished in Pennsylvania. My question is can a bank account be levied if I open one here? And will it make a difference if I use a bank that only has branches in Pennsylvania as opposed to a national chain? I mean could a New Jersey levy be enforced on a Pennsylvania bank? Any insight you can offer works be appreciated. Thank you.
Your bank account can be levied on a judgment from another state. It can make a big difference if the bank is only in your local state and cannot be served in NJ, but not always.
Look for a way to resolve the judgment in the future if possible.
Hey. I had a judgment issued in 2003 two months ago I was sent a writ to renew it this week they sent a discovery for me to answer should I answer the questions about my bank accounts and job info its with discover the lawyer is Pressler and I live in Philadelphia PA.
You can be compelled to provide answers to asset discovery related to your judgment. It is best to talk about your rights with an experienced debt collection defense attorney in PA.
What is your goal for this account? Can you afford to settle it?
I live in phila, pa. A credit card company filed a judgement for $5,800. Today a freeze was put on me checking account. The only money I had was my pay check.
What can I do? Is it too late to make payment arrangements? The the reason for the no pay to creditor was for personal family issues that needed payments to go for legal fees in this matter.
Hope to here back.
Thanks
You can still set up a payment plan. If you get them to agree, make sure to get the deal in writing.
Who is it that got the judgment and what is the name of the attorney collection firm?
Hi, I live in Pa and had a debt buying company sue me at the magisterial district justice for a balance on a credit card that was written off. I went to the hearing and the judge was very familiar with the debt buyer’s attorney and was very short with me, at some times even rude. I couldn’t afford an attorney for this and had studied up on debt buying companies and I told the judge that I researched that if the debt buyer didnt have the original service agreement that the suit could be dropped. The debt buyer didn’t have my original service agreement and the judge still ordered a judgment on me for $1500. I don’t own a house but own a 13 yr old vehicle and have a bank account. Can they seize my car and bank account?
Pennsylvania protects a total of $300.00 for all of your personal stuff. That is supposed to cover the value of your car, all household items, and that maximum amount of cash in your bank account.
Yes, your bank and other items are at risk.
What was the debt for originally?
Who was the debt buyer involved?
the debt was a sears credit card and the debt buyer is Midland funding llc. and thank you for responding so quickly.
Sometimes the most cost effective path is to settle the debt. How much money can you pull together in the next few weeks in order to negotiate and fund a settlement with Midland Funding?
that’s the problem, I’m barely getting by, paycheck to paycheck because I was off work with severe illness for 22 months which is why I couldn’t pay the bill. I had insurance on the credit card and when I was hospitalized multiple times they made the payment so when I reported losing my job because of fmla depleted, sears said the insurance would cover it. I told the judge this but it didnt matter and I don’t have the paperwork verifying this because of the length of time that’s passed . I can’t get anything from sears since the debt buyer owns the account. I’ve only been back working since January and at a much lower salary than previously so I don’thave money. also if I could have made an agreement with the debt buyer, what ‘s stops them from trying to buy any other delinquent debt I have. I don’t have many and this is the first time I haven’t paid a debt, also this was the third time I.opened a sears account and previously paid those off because I was financially able to, so this isn’t a situation I’ve been in before.
Midland Funding is not able to go out and target accounts of yours as specific targets to purchase from others. Debt buying does not work like that.
Have you considered filing a CFPB complaint about the credit card protection plans sold to you by sears or Citibank? Citi just paid a ginormous fine a week ago, and partially for the add on products like credit card payment protection plans.
If you cannot get traction with the CFPB complaint than you are likely looking at the least costly path being a settlement with Midland. If that is the case, try to put together about half of the judgment balance as quickly as possible before you call to negotiate the deal.
Hi Michael,
The name of an attorney would be great…my real defense is stupidity.
Pay check direct deposits-bank with frozen accounts will not allow me to close the accounts or deflect any deposits.
My employer thinks it is too late to stop/hard copy my paycheck this time.
Support I was able to put on hold.
I called the creditor again-today the man I spoke to is not in for a few hours-“late day.”
One additional question-will the creditor allow me to access any funds to buy food, gas etc.? I have about $8 in cash-I never carried a lot.
I can not thank you enough for your time.
The creditor is not going to want to reverse any funds held, and the bank will not be of real help here.
Talk to Greg, the attorney I sent you contact details for, and find out what your options are. If you are in eastern PA he may refer you to someone closer to you, but he offers a no cost initial consult, so take him up on that.
Michael,
original-Maryland National then sold to CACH LLC
law firm- R. Calef and Assoociates-Pa
Is there any way in Pa. to file motion to vacate?
TY and I appreciate all of your help. I will get back to you.
You can try to get the judgment vacated, but the underlying reason for trying to do that should be solid. I can email you contact details to an attorney with the experience you need if you like?
Michael,
The above information is helping me a lot…My accounts are frozen, as of yesterday. I spoke with the bank, who referred me to the law firm for the debt. I couldn’t get any answers. My bank account will have my pay check and child support in 2 days-direct deposit.
I know these are ransom comments and specific questions, but if I can re-route both my paycheck and child support to another account, should I choose a different bank than the one where the accounts are frozen? How long can the ‘freeze’ be on my account?
TY in advance…
The freeze is for specific funds. I would not trust the account until the judgment is resolved, nor an account with the same bank. Your next bank account can be located in short order too.
How much is the judgment for?
What are your goals for resolving the debt?
What state are you in? It would be good to know your states exemptions?
Talk to someone in HR or accounting at the job and get paper checks issued. Are your child support payments coming direct from your ex spouse? Is the relationship friendly enough to divulge the judgment and that payments are better made without the direct deposit until you get the matter resolved?
Michael,
Ty for quick response…I am so scared…
The judgement was for $14k and today they said they would take $7K. I spoke with the office several times. They asked me what I was “comfortable paying” and they “didn’t want to leave me “without.” However, I currently don’t have a dime since the accounts frozen. I offered to pay $4k today and then arrange for the rest during the month-either I pay it or I can’t access money anyway.
I spoke to a different person each time even though I asked for the first man I originally spoke with. They said they had to “confirm with my bank” that the account was frozen and by COB today they said my bank had not notified them. No further negotiations-they said call tomorrow!
I live in Pa. and I am afraid my ex and I don’t speak.
Will this firm actually negotiate with me? or just keep everything frozen? Can they take the money out of accounts?
Ty again…
Pennsylvania Bankruptcy Exemptions
Unless otherwise noted, all law references are to the Pennsylvania Consolidated Statutes Annotated
Wages
42-8127 – Earned but unpaid wages; abuse victims’ wages.
Wages are exempt from garnishment in PA. Your bank account enjoys next to no exemption, which is why they go after them so frequently in PA. Your household goods are not protected well in PA either.
Who is the judgment creditor (name of plaintiff that sued you), and also what is the name of the law firm that handled the case?
It is possible to settle debts for a fair savings even at this late stage, and 50% is not uncommon, but they have leverage right now. More so if your paycheck and child support are not diverted.
Let me know what they say tomorrow. I would still do anything possible to divert your auto deposits.
I have a credit card with pnc bank that is about to go to collections because ive lost my job along with the place i was renting. I have a job now but i need the money to get a place. I also have a bank account with pnc bank. If it goes to collections will they be able to just take the money that I do have out of my account?
I have an account with a credit union too will they be able to take from that account?
I would use my credit union bank account until I get all of this resolved with PNC if it were me. I would not necessarily close the bank account with PNC, but would keep little money in it. Read more about how you bank when settling with a creditor you have other accounts with.
Your bank account with the credit union would not be at any risk from an account in collection with PNC unless you were sued and a judgment entered against you.
I’m another member of the Weltman Wienberg and Reis fan club. The obtained a judgment against me back in 2013 and used it to freeze my bank account then, but since the account had only a couple hundred dollars in it, they didn’t take any. Back in February, they used the same judgment to freeze a different bank account. The amount I owe is in the neighborhood of $4000. On April 15, $1,017.68 was debited from that account and given to them. My question is, what next? Does their acceptance of the $1,017.68 settle the debt, or can they freeze my account any time they please? They’ve repeatedly refused my attempts to negotiate a settlement, and when I tried to get help from an attorney after the most recent account freeze, I was told that there was nothing they could do, and the time to contact them was before the account was frozen. I live near Harrisburg, PA. Thanks in advance
That money Weltman Weinberg and Reis got in the bank levy does not settle the judgment. It just pays it down.
The cannot just show up daily with a court signed levy. It is usually something collection attorneys do on the 1st, 15th, and last day of the month, as that is when people are most likely to have money on deposit from paychecks etc.
Your best shot at getting a settlement will be when they have tried again to get paid and fail. Then a settlement offer will begin to look good again.
Thanks for the reply. They called me today, and I offered $1600 to settle the remainder of the debt, to be paid as soon as I had access to my account back. To my surprise, they accepted my offer! Moreover, they are suddenly bending over backwards to get me back my account. This will be quite a relief. Thanks again for the information!
Not a bad settlement all things considered. Great job!
Who was the judgment creditor, or the named plaintiff the Weltman firm was working for?
Midland Finding LLC, who purchased my credit card debt from I believe Chase Bank. I’m not positive because I had three or four credit accounts that suddenly became Chase accounts back around 2008
Makes more sense now. In my experience, Midland Funding is better at settling than most debt buyers out there at this time.
I just received a judgement against me from cbe collection. In trying to set up a payment arrangement I can afford but I sit on hold. How long do they have to freeze my bank account? Do they have to try to set up a payment arrangement before freezing?
What was the date the judgment was entered? What state are you in?
My husband has been dealing with a debt that was supposed to be paid by our insurance (this was prior to our marriage). In April of this year he received a notice of application for wage execution. He called Apothaker & Associates and made payment arrangements for $70 a week and sent a voided check to them so they can have the account information. We have been calling them since asking why the money has not been taking out of the account. Saturday 7/5/14 he received a letter from the court clerk to levy his account. The letter was dated 6/12/14 but postage stamped 7/2/14. It states no money would be removed from the account and he has 10 days to dispute this in writing. He has tried calling the court clerk with no return call back. Today we were going to go food shopping and low and behold over $700 was removed from our account. It was early so he called the bank and they said they received the letter as well. How can ServPro go for a levy if Apothaker goes for wage execution with a payment arrangement? Is there anything we can do?
We do have a letter from Apothaker that states they were depositing the check within 3-10 days on April 4, 2014. He does not have a payment agreement letter from them. Are they really attorneys? I am very confused on this.
Yes, Apothaker and Associates are real collection attorneys. Who are they collecting for? What amount? What stat are you in?
Yes, they can levy an account while using other extra ordinary means to collect.
Did your husband ever know that he was being sued for collection?
Weltman, Weinberg & Reis has had our county send a writ to our bank to freeze our accounts. The accounts are now frozen. The debt is solely on my wife’s name but we have a joint savings/checking account. After doing some research I found that this cannot be done since it is a joint account. How long will it take to unfreeze the account? Should they have not done some research to realize it was a joint account before freezing it? Our financial institution has sent the interrogatories back to creditor but they have yet to get back to us. Should we open a new account in only my name until this gets settled? Can I deposit my wifes payroll check as well as my own into this new account and will these funds be safe? Thanks for your time. We reside in Pennsylvania.
Are you sure they cannot freeze a married couples joint account in Pennsylvania? Talk with an experienced consumer law attorney in PA and verify this.
If it were me, I would open a different account than the one that is being levied, separate from my wife, and maybe even at a different bank. And I would have her endorsed paychecks deposited there until the judgment is resolved.
What is the plan for the judgment debt? Those things can be negotiated and settled for less. Here is a page dedicated to the topic: https://consumerrecoverynetwork.com/question/can-you-settle-credit-card-judgements-like-other-debts-stressed/
Help! My GE retail bank account which I owe $3887 on was charged off in early Feb. I just got a letter from Patenaude & Felix, APC. saying” that the debt has been assigned to them to initiate collection efforts regaring the delinquent outstanding balance to the client. To contact them to eliminate further collection action.” Should I request verification for the debt before calling them? Are they going to sue me right away, as I haven’t received any phone calls from them yet or any other indication that they are indeed suing me besides them being a law firm. Will they let me set up payment arrangements before actually suing me? Any help would be greatly appreciated. I can pay them a lump sum of $500 or even $750 now and then monthly payments of $100, but I don’t know if they do that type of thing. Help!!
I am located in PA by the way.
I do think you are at an increased risk of being sued, as that is all too often the collection method of Patenaude and Felix. You can indeed set up some form of payment with them, but I would encourage you to do that now rather than wait, if that is the direction you want to go.
If it were me in your shoes, and I was risk adverse (wanting to avoid collection lawsuits), I would prefer, if at all possible, to raise 50-ish percent to offer as a lump sum settlement to avoid court collections, and the longer term payments. Is this a possibility for you?
I can’t come up with 50% at once. The most I may be able to come up with is $1000 of the $3887. Should I still send them a debt verification letter before setting up payments with them? Or should I just contact them immediately to set up payment arrangements. I have heard they are very mean and rude, so I was going to attempt to contact the person by email so I have record of all of the conversations between us and hopefully can set up a payment plan that way. I don’t want to be sued for $3800, I can’t believe that it got to this point so fast. Do you think they will sue right away or try collection efforts first?
Heather – 1k would probably not get the deal done unless you had documented hardships without much expectation of that changing. I do think you could be sued in the next month. I am not saying that it is certain to happen, or happen at all, but there is a higher risk due to the reputation of the firm. I do not see them wasting much time with typical collection agency payment efforts.
You can send debt validation if you like. It should not prevent them from filing suit to collect if that is their intention. It could in fact better prepare them for that.
I would be interested to know if you found calling them and working through this to be overly complicated, or a rude experience. Please post an update with how things progress.
I told them I couldnt afford anything right now. They asked if I was getting a tax return but I owe federal. I told them I can not do more than100$ a month but they said they need 155$. Then I told them I need to see if I cant talk to my family but they we pressuring me and I caved in.
daniel – I would not say you did the wrong thing – paying a debt collector – if you know the debt is yours, and know they are legitimately collecting as/for the owner of the account. You can verify that with the original creditor, in this case the school. It is best to get any arrangement you make in writing when possible. Keep track of all payments you make, and store documentation of those too.
Do you have concerns about the legitimacy of the debt collector? What is it you read about them that caused you concern?
When setting up payments, only agree to what you can afford. Is the 155 a month going to be impossible to live up to right now? Did you agree to have that amount pulled from your account electronically each month?
First off, I really do appreciate all your help. The debt is legitimate. I just feel uncomfortable giving them my checking and routing number. I do not think the 155 will put me out, but it is a bit more than I can afford at this time.
Daniel – Calling the collection agency back and negotiating a more affordable monthly payment is not likely to lead to a higher payment than what you have set up today. Call and negotiate a better payment with the same debt collector there, or call and speak with someone else (ask for someone else even if connected to the same collector).
I generally recommend setting up a different bank account for settlements and payments to debt collectors. You can read more about that in this report. While there is a flood of stuff on the internet about NEVER give account info to a debt collector for auto payments, most of those concerns, while at one time legitimate, are very dated at this point. Legitimate debt collectors are not going to grab at your bank account for more than what was agreed to in today’s debt collection reality. Errors happen though, and having one occur with the account your regular monthly bills are paid from sucks, and seems to happen at the worst time. More than that though, is cancelling auto payments if a new financial hardship occurs where you can no longer afford payment agreements. It is much easier to shut down an account that is only used for a specific purpose, than one used for all purposes.
I gave my bank account information to a collection agency. I did some research and realized this was a stupid decision. I owe about $1500. Should I close my bank account. I do not want them stealing money.
Daniel – What is the name of the debt collector? What is the background information on the debt they are collecting? You may not be at any risk. But I can better offer feedback with answers to those questions.
It is the General Revenue Service (GRC). It is for outstanding tuition.
Thank you for the feed back.
Daniel – Do you recognize and agree with the debt and amount that General Revenue Service is trying to collect? Are you agreeing to a monthly payment plan, and that is why you gave them your bank account information – to pull a payment out each month you know you can budget for? Or was this something more like a one off collection pressure tactic where offering any payment seems like a way to get the phone calls to stop?
Please help I had a judgement put against me by a collection agencncy representing Dell. They have contacted one of my finacial institutions that I have open but no money in it. My direct deposit goes to another bank that gets my direct deposit and I use it on the regular, my question is can they freeze that account also? My judgement letter only lists one financial institution and not my other,,
Please help, T
Eddie – It appears you have a judgment against you and the judgment creditor is trying to exercise the additional rights for collection they have that result from the judgment. They can do the same thing to your other personal account you use. What are you looking to accomplish?
Weltman, Weinberg & Reis has done the same thing to me. My bank account has a levy and is negative $12,000. The little money I had in the bank was for my rent and utilities, which are now late . I don’t have money for attorney fees on top of all this. I did call Weltman, Weinberg & Reis but this was done at the end of the day on a Friday and they are gone for the weekend. I need to file for bankruptcy but have not been able to afford the filing fees. I will be homeless without paying my rent and will not be able to recover from any bank fees. Please help me with any advise you have.
Valerie – Have you tried to connect with any low income legal aid office in your area? If not, you should try that first.
What state are you in? What was the total amount they were able to get from the levy?
Hi there I was just wondering if you could help me out with a situation I’ve found myself in. I have an account with PNC and logged on yesterday to see that it’s in the negative about $7,000, but couldn’t find a charge that would put it there. When I called to inquire about it they told me that I have a legal hold on my account and they gave me the phone number to Weltman Wienberg and Reis on behalf of Discover Card and that the hold isn’t for $7,000 but $2,300 (the total owed to Discover) on each of my three accounts. Turns out they have a judgement against me. I have not called them yet as I don’t want to say anything I shouldn’t. Fortunately they’ve put a hold on my accounts at a time when very little money was available. I just want to know my best course of action: do I attempt to get the judgment vacated as I believe I was never properly served? do I wait the hold out – how long can it last? I will try to negotiate the debt and pay monthly but don’t have a whole lot to put down nor to make monthly payments with. I also found that in PA $300.00 is supposed to be exempt from the hold but everything was frozen.. Do I need a lawyer?
Thanks so much for your help.
Mel – If it were me, before calling the collection attorney, I would look at the court record for who served you, how, at what address etc. Once you know that information, post an update and lets go from there. In the mean time I would not deposit any money in that account. Do you have any auto deposits going to the account?
As far as connecting with an attorney, yes, you should. You want to speak with an attorney experienced with debt defense. What is the name of a nearby larger city? I can email you contact info for the type of attorney you want to consult with.
Wow thanks for the quick reply!
I’ve discontinued my direct deposit for paychecks so they really aren’t holding much. I also haven’t been contacted by the Collector to tell me that my accounts been frozen.
Philadelphia is the closest city to me.
I will go to the courthouse tomorrow to get all the info on the case.
Thanks again
Sounds good Mel. I sent you an email with contact info to a great consumer law attorney in your area. Call him after you get the info from the court and see what he thinks of the situation.
Hi, I was searching the internet for help and found this. Weltman, Weinberg & Reis has done the same thing to me. My bank account has a levy and is negative $8,000. I have a check out that is for taxes and many bills that i paid which will all be insufficient funds now and charges from the bank will be piling up on top of everything. I don’t have money for attorney fees on top of all this. I did call Weltman, Weinberg & Reis and they said I need to have the bank fax over a copy of a interrogatory. Please help me with any advise you have.
Sandy – You should at least consult with an experienced consumer law attorney about what your options are. Many offer a no cost initial consult, so the price of getting reliable feedback is certainly right. You may even learn of some options that are affordable to pursue. Post the name of a nearby larger city and I will email you contact info to the type of attorney you should connect with for a consult.
Thank you for replying back so fast. Scranton is closest to me in Pa.
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
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!
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
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
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.
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
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
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,
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!!
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.
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,
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.
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,
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.
Hello,
I was served with a Form SUM-100 by a “LAW OFFICE OF PATENAUDE & FELIX in California. The amount is for a credit card (Dillards) in the amount of $2,202.09. We settled on $ 552.00 to be made in two payments. I have paid the first (today), and was left with the question of the court status. I called back the lady I spoke to at Patenaude & Felix to ask her what happens now? DO they file something to the court, such as a dismissing of the case? She has not taken any of my calls, I get voicemail. Not sure if I should respond to the SUM-100 form to avoid a legal judgement should the Felix Co pursue this issue?
Thank you,
Crystal
What was the exact date you were served?
Hi, Ive recently been contacted by weltman, Weisman & reis. I’ve tried negotiating with them to no avail. The original loan was from direct loans for a student loan, and they sold out to someone else. I haven’t received anything from either of the former in years, and especially since I’ve graduated college
just two years ago. My concern is my wages being garnished, I’m not rich or middle class and my offer for payments has been rejected. Can weltman garnish my wages before a court order appearance? Would the court appearance be held in the city I live in? What are my options for a company that will make me homeless by taking everything I earn?
Has the Weltman Weinberg and Reis collection law firm served you with a lawsuit? They need to sue you first, then get a judgment, before they can approach enforcing that with a wage garnishment.
They cannot take everything you earn. Far from it. What state do you live in? What is the balance of the debt?