Legal Question in Credit and Debt Law in Pennsylvania

Re: collection agency

Yes. A charge off is simply a tax event which allows the creditor to cease reporting the claim as income. Rather, they will now only report income actually received from you.

The statute of limitations is 4 years in PA. So they can sue you at any time but not later than 4 years after the last payment was made. If they already obtained a judgment, there is no time limit to their right to collect. That includes freezing your bank account and any judgment is a lien on real estate owned in the county.

You could consider a bankruptcy which, if you are eligible, will eliminate the debt entirely along with any others.

I trust this answers your question but feel free to call or E-mail on a free initial basis.

Re: collection agency

You asked about collections.

Yes. A charge-off is simply an accounting tool. Under the Fair Credit Reporting Act the clock starts running six moths after the last consumer initiated activity or the date of charge-off, whichever occurs first. Essentially, the only thing a charge-off means to the borrower is that his/her credit is trashed.

The statute of limitations runs from the same date.

You can be successfully sued by the creditor or a collector at any time after the debt is due and before the statute of limitations expires.

Regards,

Roger