Pennsylvania Debtor And Creditor Legal Questions

Anyone can sue anyone at any time for anything.  Similarly, anyone who is sued has the right to defend themselves and, in a debt collection case, the burden is on the Plaintiff to prove its case by preponderance of evidence. You have been sued in the Court of Common Pleas as opposed to Magisterial District Justice, commonly referred to as small claims court.  No hearing is scheduled.  Rather, you must either file a response within 30 days of service, Plaintiff must send you a letter after 20 days affording another 10 days, or suffer a default judgment. I strongly advise you to speak to debt relief counsel ASAP about your options.  I trust this answers your questions but do not hesitate to call or email on a free initial basis.   Matthew R. Nahrgang, Esquire 35 Evansburg Road, Ste 400 Collegeville, PA 19426 610 489-3041 o 610 489-3042 fax mnahrgang@verizon.net nahrganglaw.com ... Read More

If you timely paid off a balance which clearly stated it was the total owed, the creditor may not pursue you for additional funds.  One exception is an error in the payoff statement.  The underlying contract governs so that you are obligated to pay all monies actually owed, including interest, late charges, and often attorney’s fees.  If the creditor erred in the payoff, the same is capable of correction. There is no action for you to take.  However, if the creditor still reports a balance on your credit report, you can dispute the same with all 3 credit reporting bureaus.  Also, if they sue to collect what they claim is still due and owing, you can defend yourself and the burden is on the creditor to prove the balance.  Finally, you can consider taking action against the creditor, but your remedies are few unless you are or were pursued by a debt collector who is merely an agent for the original creditor.  In that event, you should speak to a consumer attorney who pursues creditors and debt collectors who are violate federal or state law. I trust this answers your questions but do not hesitate to call or email on a free initial basis.    Matthew R. Nahrgang, Esquire 35 Evansburg Road, Ste 400 Collegeville, PA 19426 610 489-3041 o 610 489-3042 fax mnahrgang@verizon.net nahrganglaw.com ... Read More

When you have difficulty paying your debt, you have 3 options, negotiate, ignore, or bankruptcy.  Ignoring debt will result in collection, which will likely include one or more lawsuits.   A lawsuit will likely result in a judgment and can also result in loss of bank accounts and personal property. If you simply want to negotiate with the creditors, as opposed to the other 2 options, my best advice is to speak with a US Trustee approved credit counseling agency who will determine a budget and negotiate on your behalf.  For consumers, there are two types of bankruptcies, Chapter 7 and 13.  The former is generally for those who simply require the elimination of unsecured debt such as credit cards.  The latter is generally for those who have fallen behind in secured debt such as a mortgage.  Chapter 13 allows you to repay any arrears over five years as well as pay unsecured debt in part or in full if you have too much income for Chapter 7 . A bankruptcy protects just about all consumer assets.  An exemption is a dollar amount assigned to an asset so that, if a Trustee ( the person charged with liquidating assets) were to attempt to sell such an asset, he would have to pay the exemption amount to you.  Since the stated exemptions usually cover the value of the assets, most consumer cases are determined to be "no asset".  Thus, you simply obtain a discharge of your debt. You should speak with experienced bankruptcy counsel to discuss all the ramifications and opions.  I trust this has been helpful, but feel free to call or e-mail on a free initial basis. Matthew R. Nahrgang, Esquire 35 Evansburg Road, Ste 400 Collegeville, PA 19426 610 489-3041 o 610 489-3042 fax mnahrgang@verizon.net nahrganglaw.com ... Read More

Debtors prison was eliminated more than 150 years ago such that you cannot be imprisoned for failure to pay a civil debt.  However, creditors still have rights.  They can call you, write to you, and sue you.  The first 2 options cannot effect you at all, but the third should not be ignored.  If you are sued and don’t defend, a default judgment will be entered which can then be collected against your assets such as a bank account. If you have debts in excess of $10,000.00, I suggest considering a bankruptcy as a possible permanent solution.  Not everyone qualifies, but an experienced debt relief attorney can advise you regarding your options. I trust this answers your question but do not hesitate to call or email me on a free initial basis.   Matthew R. Nahrgang, Esquire 35 Evansburg Road, Ste 400 Collegeville, PA 19426 610 489-3041 o 610 489-3042 fax mnahrgang@verizon.net nahrganglaw.com ... Read More

If the claim is $12,000.00 or less, you can file a complaint in your local magisterial district justice for a fee.  A hearing will be scheduled, usually a default hearing if the defendant fails to respond.  In that event, you will obtain a default judgment.  If she defends, a hearing will be scheduled at which you will have to appear and prove by preponderance of the evidence that a legal enforceable contract exists that she breached. I trust this answers your question, but feel free to call or email on a free initial basis. Matthew R. Nahrgang, Esquire 35 Evansburg Road, Ste 400 Collegeville, PA 19426 610 489-3041 o 610 489-3042 fax mnahrgang@verizon.net nahrganglaw.com ... Read More

Generally, attorneys only practice in a limited geographic area.  As this format does not allow for location disclosure, I cannot state whether this is a matter I would handle.  Having said that, if you are out of my geographic area, I am happy to attempt a referral to someone who is local. In any event, any suit involves specific time frames and deadlines which must be met.  Accordingly, I urge you to speak with counsel in real time ASAP to assure rights are not lost. I trust this answers your question, but feel free to call or email me on a free initial basis.   Matthew R. Nahrgang, Esquire 35 Evansburg Road, Ste 400 Collegeville, PA 19426 610 489-3041 o 610 489-3042 fax mnahrgang@verizon.net nahrganglaw.com ... Read More

I suggest filing in her district so there is no dispute about jurisdiction.  If you have written documents evidencing the loan, that should be enough.  An attorney isn’t required but many people find it very helpful, nonetheless. I trust this answers your questions, but do not hesitate to call or email me on a free initial basis.   Matthew R. Nahrgang, Esquire 35 Evansburg Road, Ste 400 Collegeville, PA 19426 610 489-3041 o 610 489-3042 fax mnahrgang@verizon.net nahrganglaw.com ... Read More

If your father has the car, he is liable for the debt.  However, he may return the car.  The creditor will then sell it and seek to collect the deficiency, the difference between the sale proceeds and the balance, from your father.  While the creditor may call or write to collect, neither of those actions effect your father at all, other than the obvious hit to his credit.  Credit, of course, is irrelevant at his stage of life. The creditor can sue at any time within 4 years after the last payment made.  If they never sue, your father will suffer no consequences, other than the collection efforts which are at most annoying.  If they sue, he can defend it or try to resolve the deficiency. Finally, he could consider a chapter 7 bankruptcy to eliminate all his debt. I trust this answers your questions, but do not hesitate to call or email on a free initial basis.      Matthew R. Nahrgang, Esquire 35 Evansburg Road, Ste 400 Collegeville, PA 19426 610 489-3041 o 610 489-3042 fax mnahrgang@verizon.net nahrganglaw.com ... Read More

You can file in small claims Court however you will be limited to filing suit for the Jurisdictional limit of $12,000.00.  Considering that you are still owed approximately 40K you should file your case in the Court of Common Pleas.  I recomend that you speak with an attorney to go over your options and with some investigation and discussion determine if it is worth it to you to file your case.... Read More

Upon payment of the mortgage balance, the mortgage company is required to satisfy the mortgage.  Normally, the abstract company who conducts the closing assures the same is filed promptly after closing.  That should be your first step, although the company may no longer exist given the passage of time.  If that avenue fails, you must request that the mortgage company satisfy it.  That, too could be an issue for the same reasons.  Fortunately,  there are legal methods to force satisfaction as indicated in the aptly named Mortgage Satisfaction Act. https://casetext.com/statute/pennsylvania-statutes/statutes-unconsolidated/title-21-ps-deeds-and-mortgages/chapter-2-mortgages/satisfaction-of-mortgages/mortgage-satisfaction-act I trust this has been helpful, but feel free to call or email on a free initial basis. Best Regards,   Matthew R. Nahrgang, Esquire 35 Evansburg Road, Ste 400 Collegeville, PA 19426 (610) 489-3041 o (610) 489-3042 fax nahrganglaw.com  ... Read More

Generally, it is never too late to settle a case, even at the day of hearing.  If you were sued in Magisterial District Justice Court, the first hearing listed is usually simply a default date.  If you fail to notify of your intent to defend, the Plaintiff will not be required to appear and a default judgment will be entered.  If you notify of your intent to defend, an actual hearing date will be assigned.  You can try to settle up until the actual hearing begins and even after that as the courts generally take days or even weeks to render a decision.   If you were sued in Common Pleas Court, the complaint contains a Notice to Defend advising that you have 20 days from the date of service to file a response.  Even after that, the Plaintiff must provide a 10 day notice affording another 10 days before a judgment may be entered. I trust this answers your questions, and, if you live in the Delaware Valley, feel free to call or email on a free initial basis. Best Regards,   Matthew R. Nahrgang, Esquire 35 Evansburg Road, Ste 400 Collegeville, PA 19426 (610) 489-3041 o (610) 489-3042 fax nahrganglaw.com... Read More

Generally, there are 3 methods to protect assets from execution.  First, defend any lawsuit filed by the creditor.  If that case is successful, assets will be protected.  At the very least, arrangements can be made to avoid loss of assets.  Second, transfer assets from your name.   However, doing so could result in an action by the creditor to reverse the transfer based upon the Fraudulent Transfer Act.  Third, add a spouse to bank accounts and other titled assets which may ultimately protect that asset under the marital exemption known as tenants by the entireties. I trust this answers your questions, and, if you live in the Delaware Valley, feel free to call or email me on a free initial basis.    Best Regards,   Matthew R. Nahrgang, Esquire 35 Evansburg Road, Ste 400 Collegeville, PA 19426 (610) 489-3041 o (610) 489-3042 fax nahrganglaw.com... Read More

While the general rule is that only those who actually incur debts under a contractual theory are liable, PA has a statute creating liability for family members regarding necessaries.  Although rarely invoked, medical providers are the most common such creditors. I trust this answers your questions, and, if you live in the Delaware Valley, do not hesitate to call or email me on a free initial basis. Best Regards,   Matthew R. Nahrgang, Esquire 35 Evansburg Road, Ste 400 Collegeville, PA 19426 (610) 489-3041 o (610) 489-3042 fax nahrganglaw.com  ... Read More

If your husband is being sued, the first thing he should do is speak to an attorney about defending the case, negotiating, or possible bankruptcy.  You are not liable for his debt, except in rare circumstances.  Also, in a divorce, debts may be considered marital for purposes of distributing assets. If your husband does not defend, or does and loses without filing a bankruptcy, all you need do is assure that you don’t share a bank account.  While such accounts are ultimately exempt from the creditors of just one spouse, the account can be frozen pending a determination that it is indeed exempt. I trust this answers your question, and if you live in the Delaware Valley, feel free to call or email me on a free initial basis. Best Regards,   Matthew R. Nahrgang, Esquire 35 Evansburg Road, Ste 400 Collegeville, PA 19426 (610) 489-3041 o (610) 489-3042 fax nahrganglaw.com... Read More

Generally, there is a 4 year statute of limitations on contract cases.  There is an exception for certain contracts signed under seal that is 20 years.  I always advise getting served as the only way to defend against a claim is to know what it is. I trust this answers your question, and if you are in the Delaware Valley, do not hesitate to call or email on a free initial basis.        Best Regards,   Matthew R. Nahrgang, Esquire 35 Evansburg Road, Ste 400 Collegeville, PA 19426 (610) 489-3041 o (610) 489-3042 fax nahrganglaw.com... Read More

Generally, contracts which require notification of compliance do not give rise to claims of default.  Rather, if the creditor asks, you will simply provide proof.  Having said that, if the creditor does declare a default, your defense would be that the default was immaterial such that a true breach did not occur. I trust this answers your question, and if you are in the Delaware Valley, do not hesitate to call or email on a free initial basis.    Best Regards,   Matthew R. Nahrgang, Esquire 35 Evansburg Road, Ste 400 Collegeville, PA 19426 (610) 489-3041 o (610) 489-3042 fax nahrganglaw.com... Read More

There is no right to cure a car loan default in PA.  However, before the car may be sold, you will have the option of redemption which is paying the entire balance, plus costs, to recover the vehicle. If you file a Chapter 13 bankruptcy, that will prevent the creditor from selling pending the case in which you will be allowed to repay the entire balance over 5 years. I hope this answers your questions, but feel free to call or email me on a free initial basis. Best Regards,   Matthew R. Nahrgang, Esquire 35 Evansburg Road, Ste 400 Collegeville, PA 19426 (610) 489-3041 o (610) 489-3042 fax nahrganglaw.com... Read More

I don't know where this judgment is from, but in New York judgments are enforceable for 20 years after entry.  While you are not required to answer interrogatories relating to a judgment which is no longer enforceable, it is your responsibility to find out if it is enforceable.  If you don't want to engage your own attorney, the clerk of the court may be able to help you ascertain how long the judgment is good, and if it has been revived.  It  is likely that this matter was turned over to a collection agency, which is why the attorney has changed.  As for the amount, I imigine that it now includes the interest which has been running for 14 years. ... Read More

Payday loans are just like any other loans.  Even though they may not be showing up on your credit report, that does not necessarily mean that the creditor has forgotten about you!  Sometime there are valid legal defenses that you can assert against a creditor, and sometimes there are not.  If the creditor wants to be paid, you have to evalutate your obligation to that creditor and then carefully choose how to respond to their request for payment.    ... Read More

You may have several remedies regarding these attempts at collection.  Generally, pay day loans may not be enforceable in PA and you can certainly defend any lawsuit, if they actually file one.  However, their collection practices alone may be a violation of the Fair Debt Collection practices Act (FDCPA).  If the calls are by debt collectors, as opposed to a collection department of the actual creditor, the FDCPA may allow you to sue the debt collector(s).  Finally, you can consider a bankruptcy which, if you qualify, will eliminate those debts and any others with limited exceptions such as student loans and certain tax debts.     If you are in the eastern part of the state, feel free to call or e-mail me on a free initial basis.... Read More

The best solution to eliminate a judgment is a chapter 7 bankruptcy, if you qualify.  The first area of inquiry is about your assets.  I, or any counsel that you speak with, will need to determine if you have any non exempt assets that would be at risk in a bankruptcy.  If not, then I or they would inquire about your income to determine if you have significant disposable income and pass what is known as the means test. If it appears that your assets are exempt and you have little or no disposable income, I would strongly recommend a chapter 7 to obtain a discharge, a court ordered elimination of most debts, including judgments. I trust this answers your question, but, if you are in the eastern part of the state, I am happy to advise you on a free initial basis.   ... Read More