Legal Question in Credit and Debt Law in Pennsylvania

It depends. There is a difference between being legally obligated and morally obligated. Legally, have they sued and gotten a judgment against you? If not, is there any writing evidencing the loan? Was it partially repaid? When was the date of the last payment, if any? If there is nothing in writing and no repayment, was there any demand, in writing, for repayment? When was that made? Where was the loan made?

Depending on the answers to these questions, you may or may not have a legal duty to repay the loan. Assuming that a written demand to repay the loan was made 4 or more years ago and the loan was taken out in PA and suit was never brought, then you do not have a legal obligation to repay.

Even if you are not legally obligated, was this a friend or family member who loaned you the funds? Why, after all this time are they asking for money now? Could it be that they loaned you funds in good faith and they now really really need the cash? You have to live with yourself, but depending on the circumstances, you may have a moral obligation to repay the funds.

Before you enter into any repayment agreements, you need to be very careful as you don't want to revive the statute of limitations nor do you want them coming after you for money for all eternity. You need something in writing to state that once you pay the agreed upon sum, then the debt is satisfied.

This is all very general advice and since I don't know your circumstances, my answer could change. If you want to discuss your situation in confidence, I will give free consults via email. Please contact me at [email protected] if you are interested.