Law Office of Timothy E. Wilfong, LLC

You Deserve a Fresh Start - Phoenixville, PA


Call us at 610-935-5555 for a Consultation

Helping Clients Since 2008




 
Law Office of Timothy E. Wilfong, LLC
20 S. Main Street, Phoenixville, PA 19460
 
 
Defend Collection Lawsuits
 
Don't ignore a collection lawsuit. You may have valid legal defenses against the debt or you might enter into a reasonable settlement agreement.  Avoid bank account garnishments and levies on your vehicles & personal property.
 


 Protect your Credit Score
Defend Collection Lawsuits

Creditors or Debt Collectors generally initiate collection actions or lawsuits against an individual to obtain a legal  judgment in court.  Many individuals ignore the service of process (notice) of the collection action delivered by the Sheriff and do not defend, nor attend the hearing.  In this case, the creditor will either win a judgment against the person by default or at the hearing.  A judgment is very serious and will act as an automatic lien against all of the an individual's real estate and personal property.

 

Why Defend a Collection Action?

 

The primary reason to defend a collection lawsuit is to avoid involuntarily losing money and property. 

 
The most common collection method is for the judgment creditor to request the sheriff to freeze and garnish your bank accounts.  This is particularly problematic when individuals are using their bank accounts to direct deposit their paychecks and pay their mortgages. Instead of the funds going to the mortgage company the creditor intercepts them.
 
Everyone knows that an auto lender can repossess a person's vehicle if they fail to make the monthly payments.  This is because the auto lender has a secured interest in the vehicle.  Most people, however, do not realize that an unsecured creditor, such as a credit card, that has obtained a judgment can levy (repossess) a vehicle and sell it at auction. 
 
Levy means the sheriff will take possession of your vehicle and move it to an impound lot prior to auction.  The proceeds from the auction will go toward paying the sheriff's fee, impound fee, and auction fee and the remainder will go to the judgment creditor.  
 
Another common technique creditors use to collect on a judgment is to simply wait for the debtor to sell real estate. Normally, a potential buyer will not purchase an individual's home unless they can receive clear title, meaning seller of real estate must pay off the judgment lien in order to sell his or her home.  

This even applies for purchasing real estate.  In general, a mortgage company will require that a home loan borrowers clean up any judgments or adverse information on their credit reports prior to issuing a mortgage loan. 
 
Most people are not aware that a judgment creditor may execute a judgment by having the sheriff enter your home and inventory your personal possessions and auction them off at your front door step in front of your neighbors. This happens more often than you would think and if you go to your local magistrate court you are bound to find several door step auction handbills advertised on the wall. 
 
Once the Court grants a judgment in favor of the creditor, you can expect debt collectors to send you interrogatories (questionnaires) or schedule a deposition (interview with debt collector).  An interrogatory is a questionnaire that you are required to answer by law, which demands that you list all of your assets including bank accounts, real estate, and vehicles.  A deposition is similar; however, you must appear in person before opposing counsel and answer their questions under oath and the penalty of perjury.  If you do not complete this questionnaire or attend the interview the Court could sanction (fine) you and hold you in contempt of court.  If you continue to ignore these interrogatories and depositions then court will issue a bench warrant for your arrest until you comply.  Most people don't realize that you can be arrested for failing to follow court orders in a civil matter. 
 
It is important to defend your legal rights if you are being sued in a collection action because of the havoc a judgment creditor can wreak on your life.  Please call me at (610) 935-5555 to review your case with an attorney.

Related Topics:



Law Office of

Timothy E. Wilfong, LLC

20 S. Main Street

Phoenixville, PA 19460

Phone-(610) 935-5555

Fax-(610) 680-3910

timwilfongesquire@gmail.com