Legal Question in Credit and Debt Law in Pennsylvania

Re: Collection Agency

You asked whether a creditor collections agent can seek recovery from a cohabitant.

No. A creditor can only seek recovery of a defaulted debt only from a debtor or a co-debtor. To do so a debtor must prosecute the debt through legal means. This would include attempts to collect the debt according to the Fair Debt Collection Practices Act and then through the Courts.

If a creditor obtains a judgment through the courts then the that creditor can seek recovery against the assets of the debtor. If a debtor has no assets then the judgment can remain outstanding for up to 20 years (and then can be renewed).

Instead of letting a debt go to judgment a debtor should defend against the debt by any means possible. This necessarily includes considering bankruptcy which would eliminate almost all debt.

If a debt collector violates the FDCPA then the debtor should prosecute the collector under that act. The debtor can get a statutory award and can hit the collector for legal fees in seeking the statutory award.

Regards,

Roger