How Judgement Collection Can Be Halted Through Bankruptcy

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We live in difficult economic times.  It is often beyond one’s control if he or she loses a source of income, or has a family financial emergency that makes it difficult or impossible to pay all the bills in a given month.   For instance, if the inability to make your required credit card payments continues, collection and then legal action can be taken by the creditor.  It’s critical that you know your rights and options to stop a Philadelphia judgement collection.

If a credit card collector sues civilly to collect a debt, it will likely obtain a judgment if that lawsuit cannot be defended successfully.  A common question then is: what can a creditor now do with this judgment, and how will it affect me?

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A civil judgment in Pennsylvania, by operation of law is an automatic lien on real property owned where the judgment is recorded.  Additionally, a judgment holder can execute on the judgment by issuing a writ to your banking institution.  This can result in a levy on your accounts, and will effectively freeze some or all of your assets therein in an attempt to satisfy the debt.

This financial predicament is not what any one wants or intends to happen.   You do however have options, and filing for bankruptcy might be one of them.   The Automatic Stay in Bankruptcy is a powerful tool and can unlock levied bank accounts.  It can additionally stop pending sales of your assets, and in the right circumstances remove liens that have been placed on your real estate.

Knowing your rights is the first step to addressing the issue most effectively.  Let one of the licensed Philadelphia Bankruptcy Attorneys at Sadek & Cooper give you a free legal consultation to see what options best suit your particular situation.

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