Statute of Limitations on Debt in Pennsylvania

Debts have a form of expiration date attached to them known as the statute of limitations. If you did not know this, then it would be a wise decision to read through this article as well as others to get the information that you need about this particular concept. Statue of limitations is the period of time a debt collector or agency has in which they can legally sue you for an unpaid debt. However, an expired statute of limitations prevents them from pursuing a debt indefinitely. Your debt will still exist and may be listed on your credit report, but you will no longer be legally required to pay for it.

Oral Contract 4 years
Written Contract 4 years
Promissory Note 4 years
Open Accounts 4 years

In order for you to use the statute of limitations to the best of your advantage, there are a few very important things to remember while dealing with an unpaid debt. The first is to never fail to check what the statute of limitations is. Many people fail to check this vital piece of information before they make a payment to the creditor. If it has been years since your last payment on that debt, it would be worthwhile to check what exactly the period of time is on the statute. Never trust the collector or creditor to tell you the truth about something you can easily check for yourself!

Another tip to keep in mind is to never ignore a lawsuit because the statute has run out. Even if a creditor has obtained a judgment against you and has asked you to come to court, you can’t not go just because the statute of limitations has run out. You still have to show up and answer to the lawsuit. Also, if you are sued, be sure that your attorney reviews the lawsuit and files a response immediately.

Moreover, never make a payment on, or acknowledge that you will pay a debt that is beyond the statute of limitations. Even if you pay a very small amount or enter into a payment plan, you are at the risk of starting the whole statutory period over again. The last thing you want to do is start this period again when it is just about to run out. This is why it’s important to be up to date on all this information!

There are four different categories of debt: oral contract, written contract, promissory note, and open-ended account. An oral contract is one that is made verbally, but it is legally binding. A written contract is an agreement written out on paper, and signed by both parties. A promissory note is a form of written contact, but it includes the method of payment, how much the payment will be, and interest rate. Finally, an open-ended account is one that has a varying, revolving balance. An example would a credit card account.

In the state of Pennsylvania, the statute of limitations on all four of these debts is 4 years. If you believe that time is passed on any of your debts, you can bring it up in court to get your case dismissed. Remember to also keep those tips mentioned above in mind, so you can always use the statute of limitations to your advantage!

Archana Sabesan

Archana Sabesan

Archana Sabesan is a junior at North Carolina State University. She is currently pursuing a major in Psychology, with a primary focus in Child Psychology, and a minor in Spanish. After graduating, she plans to attend graduate school to obtain her PsyD degree in Clinical Psychology. Her experiences at Stanford University and Duke University as an Undergraduate Research Assistant have helped her to develop an effective research regiment and build on her observation skills. She hopes to open a private practice of her own in the future.

Every summer, Archana works at Kumon, a math and reading workshop, tutoring children between the ages of three and 18 in these subjects. She used to be enrolled in this program herself, so this allows her to connect with the students and give them the one-on-one help that they need. Archana is also currently a member of NC State’s Psychology Club, Rotaract Club, and EKTAA (NC State’s premiere South Asian Student Organization).

Archana was born in India, and moved to North Carolina with her immediate family when she was 7 years old. She speaks mostly Tamil, the native language of South India, and English in her home. In addition, having taken Spanish classes since 6th grade, she can speak and understand it pretty well too. Archana enjoys spending time with her family and friends, watching movies, listening to music, and going to the gym. She also loves to travel, and hopes to travel the world one day and learn about all the different cultures!
Archana Sabesan