Friday, April 10, 2020

Corona virus, finances, bankruptcy ... Part 4 ... Credit Card Collections

There is much talk about "forbearance," "deferral" and other "loan assistance" programs. What does that mean for people who were already behind on their credit cards, mortgages, and other loans? If collection efforts for those debts have stopped, I have not seen any evidence to that fact.

I received a call two weeks ago from a potential client. A collection law firm filed a law suit against him on March 23, the same day Gov. Wolf issued the stay at home order for the Philadelphia suburban counties. This week, a new client hired me after the county sheriff showed up at her door with a Writ of Execution for a judgment on a credit card debt. 

As I was thinking about this issue, I looked up the filings in the Montgomery County Court, Pennsylvania using the search term "bank." I found that 175 cases have been filed between March 1 and April 10, 2020. The last case filed was a mortgage foreclosure complaint filed yesterday, April 9, 2020 bDEUTSCHE BANK NATIONAL TRUST COMPANY. There were numerous actions to file Judgments from District Justices in the county court, which create liens and allows creditors to execute on the judgments by taking actions like garnishing bank accounts.

Since the courts in this area are closed for the most part now, I do not expect much activity on these filings now. But, once the courts reopen, I expect things to start moving quickly. 

While there are programs out there to help people who started having trouble making payments during this crisis, they do not seem set up to help people who were behind before this started. It appears that the collection attorneys are readying their cases to go as soon as the courts open up again. 

If you want assistance, legal representation, or just want to know more about me, Mark M. Medvesky, or Wells, Hoffman, Holloway & Medvesky LLP, check out our website at www.whhmlaw.com.

During the "stay at home" orders, we are working with clients via telephone, internet and limited video conferencing. 

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