Legal Question in Credit and Debt Law in Pennsylvania

Re: Statue of limitations on collecting a personal loan

Dear Madam: If the agreement was made in Pennsylvania,you can bring suit within four years. The issue you have to face is whether he has the financial resources to pay a judgment. If he does, you may bring suit. You can proceed yourself in the Municipal Court of Philadelphia or in a District Justice court, depending on where the debtor lives and where the contract was made. You also have the right to retain an attorney to help you. If you wish, you can contact me at (215) 854-6343 to discuss this further. Robert M. Lipshutz, Esquire

Re: Statue of limitations on collecting a personal loan

The statute of limitations on contracts in the state of PA is 4 years from the date he failed to make payment or from the date the last payment was received, whichever was later. It appears as if your statute began to run in January, 2000.

You can sue in the district justice court or the court of common pleas. The former is, in essence, a small claims court and your claim fits very well into that category. In every county, but Philadelphia, the maximum amount you can sue for in the DJ court is $8,000.00. In Philadelphia, where it is known as Municipal Court, the maximum is $10,000.00.

The fees are generally about $120.00 for filing and service. There is one fee to file the Complaint (the document which states who you are suing and why) and another for the constable to provide the defendant with a copy (service).

There are laws you should be aware of when attempting to collect a debt. Pa. has laws to protect consumers, your boyfriend being one, from harassment in debt collection. One requirement of such laws is that you provide him with 30 days to dispute the debt in a document known as a validation notice. This should be sent more than 30 days before you file suit.

Assuming you decide to sue, a hearing will be scheduled at which he will have the opportunity to appear and defend himself. I anticipate that his defense will be that it was not a loan, but a gift. If there is nothing in writing, it will be his word against yours. In answer to the charge that he paid you some money back, he can simply claim that he voluntarily repaid some of the money you gave him. If there are no specific repayment terms, such as when payments are due, whether there is interest, or late charges, he may be successful at claiming that the agreement between the two of you, to the extent there is one at all, is not enforceable.

The courts of common pleas may be used by anyone, but usually an attorney's representation is required. The reason for that is that the rules are quite involved and even lawyers have disagreements about how they are to be applied. By contrast, DJ court exists for the lay person to prosecute his or her own claim without the need of an attorney.

The main lesson to learn from the experience is that it is always helpful to seek legal advice before beginning anything that may require legal advice later.

I trust this has been helpful, but feel free to call or e-mail with any questions.