Legal Question in Credit and Debt Law in Pennsylvania
My attorney sent an invoice on debt that is over five years old crediting out the balance of over 25K. Is the invoice and corresponding adjustments legally binding?
2 Answers from Attorneys
The financial relationship between a client and attorney is essential contractual. Generally, there is a 4 year statute of limitations on suing for breach of contract. The 4 years begins to run from the date the bill was due or from the date of your last payment, whichever was later.
What is not clear to me is whether your lawyer is giving you credit for whatever the balance was, leaving a balance of $0.00. If so, I don�t know what your concern is, as that would mean he is not seeking to collect anything.
Feel free to call or e-mail me on a free initial basis.
Very truly yours,
Matthew R. Nahrgang, Esquire
35 Evansburg Road
Collegeville, PA 19426
(610) 489-3041 ph
(610) 489-3042 fax
www.mnahrgang.com
I generally agree with Attorney Nahrgang. It looks like from your post the attorney sent you a letter crediting out the balance due so nothing is owed. However, no attorney here has seen the document. You need to have it reviewed.
As noted by Attorney Nahrgang, contracts are subject to a 4 year statute of limitations. That begins to run as of the time when the money was owed or the date of your last payment in general. Even if the letter was a collection letter in an attempt to collect a time-barred debt, unless you acknowledge the debt in writing or make a payment, it would not revive debt. Unilateral action by the attorney cannot revive what would otherwise be time-barred nor do they constitute a contract. So I don't understand your question - a letter seeking to hold you responsible for the debt is not a contract and its not legally binding in your parlance without more. It is the fee agreement that you signed with the lawyer which would be a legally binding contract. Whether it can be enforced (you paying the fees owed) again is a different issue and subject to the statute of limitations. Again, take Attoney Nahrgang up on his offer to review or have another attorney look at the document and review your circumstances.