Legal Question in Credit and Debt Law in Pennsylvania

Was this debt created in Pennsylvania or in another state? If it was created in PA, then the debt is barred by the statute of limitations. The statute in PA is 4 years. The statute begins to run run from the time that the debt went into default. Bankruptcy will toll the statute of limitations, but even being really generous here, if the bankrutcy discharge was granted in 2005, then the statute expired in 2009 or thereabouts. In that case, pay nothing at all as the debt is barred.

The statute of limitations is a legal defense that you can raise in court. It does not mean that the debt is not owed or that the collector cannot collect the debt. The debt can still be listed on your credit report for about 7 1/2 years from the date the debt went into default. Given what you have relayed here, I would suspect that the debt has already dropped off of your credit report or will do so shortly. If that is the case, that is even more reason why you should not pay them a penny.

Still, some people feel that they should honor their obligations and pay something. If that is you, then before you pay them a penny, you need to set this up in the right way. I would make a ridiculously low offer to resolve the debt for 15% of the balance on the debt as of today, if the creditor will accept, if you confirm that the statute of limitations has expired.

I can do a couple of things for you, depending on what you want to do, for a reasonable fee.

(1) I can send them what I term as a "drop dead" letter advising that I represent you and that the debt is barred by the statute and to leave you alone; or

(2) do a dispute letter - if you were only an authorized user (as opposed to a joint account holder), you may not at all be responsible for the debt; or

(3) if you want to pay, I can ask for verification that this is your debt and make sure that the debt is settled in the correct way.

I give free email consults and charge $50 for a phone consult of about 30 minutes.

You can also do these things, but the advantage to having a lawyer do this is, its done right and, more importantly, both the fair debt collections practices act and PA law provide you with extra protection when the debt collector knows that you are represented by an attorney as if they violate the laws, they can be sued and they will have to pay you. Most debt collectors straighten up if they know an attorney is involved.

Please contact me at [email protected] if you are interested in discussing this issue.