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
Short answer
State law limits how much a judgment creditor can take from your bank account, caps how heavily your wages can be garnished, and protects some of your personal property from seizure.
Key points on this page
- State law limits what amount of money can be levied or taken from your bank account to pay a judgment
- State law protects you from heavy wage garnishment
- State law limits a debt collector seizing some of your personal property to satisfy a judgment
- When asking about your own situation, include the creditor or debt buyer, the collection agency if different, your state, and whether there is a judgment or active court case
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.
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?