Legal Question in Credit and Debt Law in Pennsylvania

It depends. Assuming that this is for an ordinary unsecured debt that was incurred while the borrower lived in PA, then yes, the statute of limitations begins to run 4 years from the date of default.

Just because the statute of limitations has expired does not mean that the debt will go away, that it can't be on your credit report or that the debt collector cannot continue to collect the debt. The statute of limitations is a waivable defense that is asserted if there is a lawsuit against you. So if you are sued, immediately go to an attorney as he por she can file a proper answer on your behalf and assert the defense if it exists. If you ignore the lawsuit and do nothing, the defense is waived and the creditor will get a judgment against. So do not ignore any lawsuits where you believe the statute of limitations to be an issue.'

Even though the statute of limitations has expired, debt collectors can continue to try and collect the debt. I recommend that you send what I term as a "drop dead" letter asking that the collector stop contacting you about the debt as the statute of limitations has expired. While there are lots of free samples on the internet, its always better and worthwhile to pay an attorney to draft this for you if for no other reason than the debt collector can no longer communicate with you once they know you are represented by an attorney. You also want to be very careful not to admit the debt or revive the statute of limitations by making a partial payment.

The debt can stay on your credit report for 7 years after the debt was charged off. Some debt collectors will unlawfully "refresh" the debt. In such case, this can be disputed with the credit bureaus. Credit reports usually come with dispute forms; you can get your credit report free once per year at www.annualcreditreport.com. Debts that are under the 7 years can be reported, even if barred by the statute of limitations. Depending on your circumstances, this may or may not be an issue. Where a client is trying to refi a home or obtain credit, the only option is to wait until the debt drops off the report or resolve the debt, but it depends on the lender and their willingness to extend credit to you if the debt is barred by the statute of limitations but otherwise unresolved.