Legal Question in Credit and Debt Law in Pennsylvania

No. Not in Pennsylvania. Pennsylvania is one of the few states that prohibit the exection against wages for the non-payment of a debt. Also, you should be aware of the fact that if you are married, and the credit card company sues you alone and not your spouse, then any judgment cannot be executed against property owned jointly with your spouse. If you own property in your own name or have bank accounts only in your name, then a judgment against you can executed against such property. Finally,, you should be aware that the statute of limitations on a suit for credit card debt is 4 years from the date that you first failed to pay.

The only time your wages can be garnished is 1) FOR NON-PAYMENT OF TAXES; 2) FOR NON-PAYMENT OF CHILD SUPPORT. There may be a few other situations where this is permitted, but failing to pay a credit card is not one of them.

Can a credit card company sue you? Yes they can if you owe them money. Anyone can sue anyone else at any time for anything.

Just because they can sue does not mean that they will sue. I have some clients who have multiple debts and all their accounts have gone to judgment. I have other clients who have never been sued. Whether a credit card company will or will not sue depends on many factors, such as how much is owed and whether a credit card company or junk debt buyer knows if you have assets and hence a means to repay the debt. And don't think that there is a certain amount - at some point, perhaps, a debt is so small that the cost of hiring an attorney may not be worth it, but I have seen clients sued for $1,000.

If the debt was created in PA, then it is governed by a 4 year statute of limitations as noted by Attorney Solomon. However, the statute runs from the date of your last payment and it can be revived. What this means is, say 4 years have elapsed and you are contacted by a debt collector. You make a payment. In such case, you will have started the statute running anew.

And just because the the statute of limitations has expired does not mean that you are home free. The statute of limitations is a waivable defense. This means that if you do not file an answer and raise the defense, its waived and a judgment for the debt could be entered against you.

If it has been 4 or more years since you last paid and your are sued, then immediately see a local credit card defense attorney (Greg Artim, who is at Law Guru is one such attorney but there are others) as you may have important rights that you do not want to lose. If it has been less than 4 years and you owe the debt and want to resolve the debt, many debts can be resolved outside of litigation or even after a judgment.

With regard to wage garnishment, garnishment can only occur AFTER the entry of judgment. In addition to the areas noted by Attorney Solomon, wage garnishment may be allowed for federal student loans, back rent on a residential lease, as restitution for criminal matters and in divorce cases. However, there is no wage garnishment in PA for credit card debts.

That does not end the matter. The credit card company which gets a judgment also gets the right to collect on the judgment. While there is no wage garnishment, the creditor will typically freeze your bank account if you keep any money over $300 in there. They can also try to sell your property. And yes, I have had one creditor actually try to do that for one of my clients so it does happen. It just depends on the creditor, how much you owe, what you own and how aggressive the creditor wishes to be.

I don't mean to scare you but its not something you should ignore. Debts never go away and they will need resolved, either through bankruptcy or settlement. Even if a debt is barred by the statute of limitations and you never plan on paying, it does not stop a collector from trying to collect on it. Debts also can stay on your credit report for 7 years from the time the debt is charged off or even longer if a judgment has been entered. So if you need credit, such as if you want to buy a car or a house, you may need to get the debts resolved.

If you want to discuss your situation, I give free email consults. I also can help resolve a debt for a reasonable fee if you have the funds. Please contact me at [email protected] if interested.