Can my wages be garnished? That may be the number one question that I receive at my office from individuals who are facing a credit card or debt collection lawsuit.
In Pennsylvania, the answer is no, with conditions. Pennsylvania is one of only four states (at the time of this writing) that does not allow wage garnishment for credit card/collection agency lawsuits. Let me explain the conditions now. First, the individual must live and work in PA to be protected. Second, and this is a big one, the lawsuit must have been filed in Pennsylvania as well. If you can meet all three of the listed criteria, your wages cannot be garnished here in our state.
What is unclear is what happens if you are sued in another state? Or if you live in PA now but previously lived in another state where judgment was entered? There is not a whole lot of case law on interstate debt collection regarding Pennsylvania. There is also a bit of a conflict in the law here. Pennsylvania does not allow wage garnishment for this type of debt. However, the federal Full Faith and Credit Clause sets forth that all states must honor the judicial rulings of other states. On the other hand, our state Attorney General, although not the final arbiter on the issue, has set forth an opinion that this clause is contrary to Pennsylvania law on this issue and that wage garnishment are not permissible. A final decision needs to be rendered on this recurring subject.
Unfortunately, the fact that wage garnishments cannot occur in PA does not stop unethical debt collectors from making such a threat. That is the basis for the telephone calls to my office. Joe Debtor has defaulted on a credit card account. His account gets transferred to a collection agency. The collection agency then calls Joe and demands payment. When he advises that he cannot afford to pay, the collection agency threatens a wage garnishment. There are two problems with such a threat. The first is that the threat cannot be carried out because wage garnishment is not legal in PA for those purposes. The second is that the debt collector has just violated the Fair Debt Collection Practices Act based upon his illegal threat. If this happens to you, you will have the right to file a lawsuit against the collection agency for monetary damages.
There are a few scenarios where wage garnishment is legal in Pennsylvania. These are very limited in scope and are as follows:
1) for judgments regarding spousal or child support;
2) for failure to pay PHEAA student loans;
3) for room and board for 4 weeks or less;
4) for back rent on a residential lease; and
5) for obligations relating to a final divorce distribution.
By: Greg Artim
Posts Tagged ‘Lawsuits’
Pennsylvania Wage Garnishment Law
April 22nd, 2010Monetary settlements are often issued in substantiated malpractice lawsuits
December 27th, 2009Malpractice is classified as professional misconduct. In some cases, it is the result of negligence and errors that take place. Most malpractice lawsuits involve medical or dental procedures where the patient was adversely affected either physically, emotionally, or both due to the situation.
Monetary settlements are often issued in substantiated malpractice lawsuits. Practitioners and medical businesses are required by law to carry malpractice insurance. The cost of malpractice insurance has lead training facilities in the medical profession to give more guidance and hospitals to put specific procedures in place. Make sure they are well trained in the type of lawsuit you need. You will likely have to pay the lawyer a portion of the money awarded. Filing a malpractice lawsuit is frowned upon by many in our society.
Breach of Contract Discussion, in Its Laws, Remedy and Lawsuits
October 10th, 2009Dealing breach of contracts
Every one of us, in some way or the other enters into a contract with another person for many reasons whether as consumer buying a commodity or as a tenant for some lease of property, or as a businessperson in their frequent business dealings or as a professional in rendering its services. These contractual engagements are customary endeavor for all of us people, whether orally made or in writing.
With these, contracts are indeed a valuable tool for us, be for our security and convenience. However, the sad part though, that despite the normal contractual affairs that we engaged into, there are still considerable numbers of people who have no real knowledge about contracts, maybe as a whole, or in some important aspects of their specific contractual arrangements, including contractual breaches and law.
These concerns are something to wary about, as it is logically all-important for one to learn the constitutive matters involved in their contractual engagement.
Thus, it would be worthwhile to illuminate some aspect of contracts, the respective laws that sanctioned it, its remedies in case of breach and lawsuits.
Contracts, discussion:
Contracts
Contract is a document that is sanctioned by law that contains a legally binding agreement between parties whether to do or not do something. Some source defined contract as something that involves “an exchange of promises between two or more parties to do or refrain from doing an act, which is enforceable in a court of law”.
Contract can be entered either orally or written, but for convenience and security of the parties, it would be perfect and preferred that agreements be set out in writing.
Contract laws
Each state and jurisdictions has its own versions of contract laws enforced within their territory.
These state contract laws thus created will usually govern contracts or agreement entered between the parties within their jurisdictional boundaries. But in a more complicated business deal, contract may be governed by one of two types of state law.
Breach of contract, explanation
Breach of contract is a legal term that pertains to circumstances where one party to a contract fails to perform his undertakings, whether deliberately or carelessly, or due to someone else’s interference, in the legally binding agreement.
A party’s failure or breach in fulfilling an end under a contract has legal consequences, which can come in varied forms like lawsuits for contractual breaches, damages, or suits for specific performance or reformation or for rescission.
Breach of contract lawsuits
In Breach of contract lawsuits, it usually involves the determination of whether a party has incurred damages. The issue of damages is an important element in this kind of litigation, though the damages due to a party when there is a contract breach are relatively different and is dependent to several factors.
Not all contract breaches are enforceable through the guise of litigation, as immaterial breaches can be cured by some other medium, outside lawsuits.
However, material or substantial breaches on the other hand necessitate lawsuits, as it affects the contract as a whole and that contract damages are apparent- the presence of contract killers.
Remedies in Material Contract Breaches
When material contract breach is committed by one party, the other party to the agreement is entitled to remedies under the law.
The main remedies for a breach of contract are:
(1) Damages,
comprising of compensatory, nominal, punitive and exemplary damages
(2) Specific performance,
Alternative remedies that can be availed when after assessment by a Contract Lawyer, damages are inadequate as a legal remedy. It is regularly referred to as an order of the court that requires a party to perform a specific act, usually what is stated in a contract.
(3) Cancellation
A legal remedy in contractual breaches, which works in voiding a contract relieving all parties on their obligations and undertakings under the agreement. This remedy is available to the non-breaching party.
(4) Restitution
The legal remedy of restitution is primarily a gains-based recovery, where the non-breaching party who has parted or given a benefit to the breaching party can ask the court to put them back in their former position prior to the breach.
Irrespective of remedies chosen and depending on what remedy is applicable to your case, it is paramount that in taking any of these Breach of Contract remedies, a contract Attorney shall be wage. These matters are all too complex and intricate that requires lawyer’s assistance and help. The Attorney with its experience and qualification can offer valued assistance in the hurdles of your breach of contract predicaments.
Our experienced Los Angeles corporate and business lawyers are familiar with issues such as breach of contract laws. You can log on to our website and avail of our free case analysis.
By: Adriane Lauren Luna
