Legal Question in Credit and Debt Law in Pennsylvania

You do need to be served before any action can be taken against you. The arbitration hearing cannot take place until and unless you have been properly served by the Sheriff of Allegheny County, or otherwise as the Court orders. since this case is already filed in Common Pleas court, you really should see a lawyer. There are defenses available to you in PA in credit card cases. First, there is a 4 year statute of limitations from the last time you used the card or made a payment. Second, was the debt transferred to a collection company or other party? If so, the plaintiff is required to prove the vlalidity of the transfer. Finally, if the suit is against you and you are married, and your wife is not named as a defendant, a judgment against you is probably meaningless unless you own property in your own name. These are just some of the reasons why you should see a lawyer.

Finally, if you have been the subject of improper or harassing attempts from collection agencies, you may very well have your own right to sue under the Federal Fair Debt Collection Practices Act. Check out the Act on Google.

Since this for a credit card debt, any amounts under the jurisdictional limit (I think it was raised to $50,000) have to be heard in arbitration. Before the hearing can take place, you do need to be served with the complaint. Obviously you were not served, so the hearing has to be continued until you can be.

Once you are served (that mean you actually have to receive the complaint), you have 20 days to respond. Whether you should or not, depends on whether you have an valid defenses to the complaint.

If you need an evaluation of your case, contact attorney Greg Artim (http://www.gregartim.com/) as he is in the Pittsburgh area or any other credit card defense lawyer. Mr. Artim has been active at Law Guru and that is why I suggested him.

If this is your debt and you have no valid defense (statute of limitations, wrong party, wrong amount, no verification or proof of assigment of the debt to a junk debt buyer), then you need to decide what you want to do about the debt. First, how large is it? Do you have other debts? If you owe over $10,000, maybe you want to file bankruptcy. In that case, get a consult with a bankruptcy attorney now.

If you don't want to go the bankruptcy route, then you need to think about how you will resolve the debt.. Generally, most creditors will settle for between 50% and 80% of the amount in question, but it depends on the creditor and the law firm suing. Some will allow you to pay the settlement amount in installments and some will not. If you can only afford $100 a month, thren save up until you have the funds and then settle after the judgment has been entered.

I give free email consults and will be able to give you better advice once I know the details. Please contact me at [email protected] if you are interested in resolving the debt outside of litigation.