Question about SOL on collections

[janna57]

Okay, I saw the statute of limitations in Pennsylvania is 4 years, for all types of contracts. Does that mean,after 4 years they cannot attempt to collect? I thought that it was about 4 years,since my husband made a payment. Well, I better dig up old papers and investigate. But, they probably slid in just under the 4 yr. mark. We wouldn't be that lucky! Especially, since the case was already filed in court. Too bad, my husband did not make the hearing.

[no_it_all]

Yes, they can still attempt a collections.

[ilovemycaitybug]

I've got 10 year old CC debts being brought up STILL! I think they've spent more in payroll and postage than I had charged!

[fellowpoorman]

Alot of these CA's buy old debts for practically nothing, then make an attempt to collect, they make threats and all the other BS you can imagine, 1 yr old 10 yrs old , it doesn't matter, they take a chance and sometimes make $$. Make them spend their cash, soon they'll go away. They are called bottom feeders and there a few companies that specialize in this practice.. Thats life I guess.

[GoingDown]

Okay, I saw the statute of limitations in Pennsylvania is 4 years, for all types of contracts. Does that mean,after 4 years they cannot attempt to collect? I thought that it was about 4 years,since my husband made a payment. Well, I better dig up old papers and investigate. But, they probably slid in just under the 4 yr. mark. We wouldn't be that lucky! Especially, since the case was already filed in court. Too bad, my husband did not make the hearing.

The SOL applies to only two things...

1. How many years after the last payment that a creditor has the right to file a lawsuit against you to collect the debt. This varies from state to state.

2. How long after your account originally became delinquent that a creditor or even a collection agency can report to the credit reporting agencies. This is always seven years after it first became delinquent.

After the state SOL has expired, they can not LEGALLY win a lawsuit against you for that debt. But here's the kicker-- you still have to file an ANSWER to the lawsuit claiming that it is time barred and beyond its statute of limitations. If you file that answer and appear in court on the scheduled date and time, you will win. If you don't file an answer, they will win a DEFAULT judgment against you.

After seven years, the delinquent account must be removed from your credit report. Bankruptcies will remain on your account for ten years.

Even long after the SOL, they can still try to collect the debt by their typical methods-- calling you on the telephone unless you tell them in writing to stop calling you, sending you collection letters in the mail, etc. But since they can't win a lawsuit against you after the SOL, it makes the debts a whole lot less scary and easier to deal with.

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P.S.-- if they won a default judgment against you very recently, there may still be hope if you act quickly to appeal the judgment or try to get it thrown out and have a new trial. But you usually only have 30 days to do that. If it's a big judgment and you are fairly certain that it was past the SOL for your state, then it might be worth going to an attorney to try to do something about this right now. Or simply file for bankruptcy now and avoid or set aside the judgment.