Recent Credit Card Lawsuit

[PAPittsburgh15146]

Jurisdiction

Pennsylvania

I live in the state of PA and I was sued by a Midland Credit (VS store card) in August of 2021. I have been out of work and the judgement was place against me. I received a letter in the mail I have to go to go a deposition for available assets which I do not own anything. I will be starting a job at the end of August. What happens after the deposition? Can I be sued again? If we agree to a payment plan how would that work? If I miss a payment how does that work? I am finding a lot of conflicting information. Found you can't be jailed for civil debt. Also found they can file a motion for contempt of court for not paying the judgement payment. Any insight would be helpful. Keep in mind the debt is about $1,441 including the judgement and the fees

 

[adjusterjack]

What happens after the deposition?

The creditor can use the information to enforce the judgment.

Can I be sued again?

No.

If we agree to a payment plan how would that work?

How ever you work it out with the creditor.

If I miss a payment how does that work?

Hard to tell. The creditor might let it slide knowing that Pennsylvania doesn't allow wage garnishment for credit card debt.

Pennsylvania Wage Garnishment Laws | Nolo

I am finding a lot of conflicting information.

Look up the statute cited on the NOLO page. No conflicting information there.

Found you can't be jailed for civil debt.

You can't.

Also found they can file a motion for contempt of court for not paying the judgement payment.

Unlikely. What good would that do the creditor if you can't pay.

Keep in mind the debt is about $1,441 including the judgement and the fees

Well, why haven't you sent any money since last August? Even if you had paid $10 a week that would have paid off about $500.

Why don't you call the creditor and tell him you start work this month and ask for a payment plan.

Do it now and see if you can avoid the deposition since the deposition will just add more attorney fees to your debt.

 

[Tax Counsel]

I received a letter in the mail I have to go to go a deposition for available assets which I do not own anything.

That's pretty typical. The creditor wants to know what assets/income you have that can be attached to pay the debt. Be honest at the deposition but only answer what is asked; don't start going off about things not asked because you may say something that would tip the creditor off to something the creditor would have otherwise missed.

What happens after the deposition?

The creditor will use the information it gets to try to collect the debt.

Can I be sued again?

Not for this debt. And it would do the creditor no good anyway as all it would do is give the creditor what it already has: a judgement against you for the amount owed.

If we agree to a payment plan how would that work? If I miss a payment how does that work?

As long as you pay as agreed the creditor won't take any other assets or income to collect. If you default, then that opens the door again to the creditor going after any non exempt income/assets that you have. Private creditors cannot attach your wages in PA, so if this new job is in PA your wages are protected. Money you have in a bank account, though, is not.

Found you can't be jailed for civil debt.

Correct.

Also found they can file a motion for contempt of court for not paying the judgement payment.

Not so. A money judgement is not an order to pay the debt. It is an order giving the creditor the right to attach income and assets of yours to collect. Since it's not an order to pay your failure to pay it would not result in contempt. If the creditor does go back and get an order to pay and you violate that order, you could be held in contempt for that. That's not common however, esp for a debt of only about $1,400.

Bear in mind that the judgement is a ding on your credit, and the longer it is unpaid the worse that ding is. So if you have some means to pay it, that will help your credit rating.

 

[zddoodah]

What happens after the deposition?

Impossible to predict the future in this regard.

Can I be sued again?

You mean by the same creditor for the same debt? If so, the answer is technically yes (anyone can be sued by anyone for anything), but a lawsuit by the same creditor for the same debt would be both pointless and barred by a legal doctrine called res judicata.

If we agree to a payment plan how would that work? If I miss a payment how does that work?

Depends on the terms of the agreement.

Also found they can file a motion for contempt of court for not paying the judgement payment.

That's not true.

the debt is about $1,441

Best to get such a small amount paid immediately to avoid a lot of additional interest and fees.