Statute of Limitations on Debt in Pennsylvania

George Simons | December 02, 2022

George Simons
Co-Founder of SoloSuit
George Simons, JD/MBA

George Simons is the co-founder and CEO of SoloSuit. He has helped Americans protect over $1 billion from predatory debt lawsuits. George graduated from BYU Law school in 2020 with a JD-MBA. In his spare time, George likes to cook, because he likes to eat.

Edited by Hannah Locklear

Hannah Locklear
Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

Summary: Are you being sued by a creditor for an old debt in Pennsylvania? Find out how to make a defense using the statute of limitations.

If a debt collector sues you over old debt, you might be wondering what actions to take next. Although it might be tempting to ignore the lawsuit, especially if the debt is time-barred, you'll still need to file an Answer.

The statute of limitations is of the best affirmative defenses you could use in such a situation. So before resorting to debt repayment plans, negotiations with the creditor, or filing for bankruptcy, it's essential to know how the statute of limitations can protect you.

Respond to a debt collection lawsuit in 15 minutes with SoloSuit.

What is the statute of limitations on debt in Pennsylvania?

Pennsylvania's statute of limitations on debt is four years for unsecured loans, oral contracts, open-end accounts, revolving credit, promissory notes, and written contracts such as credit cards, medical bills, personal loans, etc.

The statute of limitations commences on the date you failed to make a payment by the due date.

For this reason, the creditor has up to four years from the date you defaulted or breached the contract to file a collection suit against you. If they fail to file a collection suit within four years, they will be barred from seeking judgment against you in court.

Pennsylvania Statute of Limitations
on Debt

Debt Type

Deadline in Years

Auto Loans

4

Rent

21

Written

20 under seal (4 other)

Oral

4

Debt on Account

2

Judgments

4


Source: Findlaw

The four-year statute of limitations also applies to the following types of debts:

  • Private student loans (not government-backed loans).
  • Secured loans for personal property.
  • Second and later mortgages that become unsecured due to a foreclosure.

As mentioned earlier, the four-year statute of limitations doesn't apply to all types of debts. Here are examples of scenarios where the four-year statute doesn't apply:

  • Contracts signed under seal. If a contract or document has the word 'seal' in the signature block, then the four-year statute doesn't apply to such a document. Some common types of instruments signed under seal include mortgage loans and other promissory notes. The statute of limitations for such documents is 20 years unless some other statute sets a different time.
  • Mortgage loans. The state of Pennsylvania has no legal requirement for a mortgage lender to foreclose within a stipulated period after a default. However, it's argued that mortgages signed under seal should have a 20-year statute of limitations. The only statute of limitations that applies to mortgage loans requires first mortgage lenders to seek a deficiency judgment six months after a sheriff's sale and not later than that.
  • Taxes. The state of Pennsylvania has no statute of limitations on most state and local taxes. Even so, the Internal Revenue Service (IRS) is bound to a ten-year statute of limitations for collecting federal taxes in Pennsylvania. The only way you can discharge federal, state, and local income taxes is through bankruptcy.
  • Civil fines. Civil fines may apply to government obligations such as criminal fines, restitution, parking tickets, etc. However, such civil fines don't fall under the four-year Pennsylvania statute of limitations.
  • Federally-backed student loans. The Pennsylvania statute of limitations only applies to private student loans. There's no statute of limitations on federally-backed student loans.
  • Domestic support obligations. The Pennsylvania statute of limitations doesn't apply to domestic support obligations such as child support, alimony, and maintenance.

Note that the statute of limitations only bars creditors from taking legal action against you, but it doesn't prevent them from collecting a debt using other measures. For example, creditors can still collect the debt outside of court using other means as long as they don't violate the federal Fair Debt Collection Practices Act (FDCPA).

Don't let debt collectors push you around. Respond with SoloSuit.

What can restart the statute of limitations?

The purpose of the statute of limitations is to protect you, the debtor, from being sued by the creditor for a time-barred debt. However, there are particular circumstances where you can unknowingly reset the statute of limitations, thus allowing the debt collector to file a collection suit against you.

Some of the actions that can restart the statute of limitations include:

  • Acknowledging debt. Always proceed with caution when a creditor contacts you about an old debt. They may try to get you to say or write a promise to pay the debt, an action that will automatically reset the clock on old debt. For this reason, it might be advisable to avoid speaking with debt collectors about an old debt and consult an attorney or SoloSuit for assistance.
  • Making a voluntary payment for any amount. Some collection agents may contact you and trick you into making a small payment as a sign of good faith. Suppose you fall for the trick and make a payment of, let's say, $10. In that case, the payment will restart the statute of limitations and give the creditor more time to collect the debt or file a collection suit against you.
  • Making a charge. Making a charge to your account on an old credit card automatically resets the statute of limitations.
  • Entering a payment plan. The creditor may present you with a settlement offer or promise to clear your debt if you agree to make a partial payment. However, if you agree to a payment plan, the statute restarts and applies to the full debt balance.

Note that if you reset the clock on old debt, it starts back at zero and gives the creditor more time to seek legal action against you. So, if the statute of limitations is ten years and you make a small payment to the debt account after nine years of being dormant, the statute automatically resets.

Make the right affirmative defense with SoloSuit.

What if a debt collector sues you after the statute of limitations has run out?

If a debt collector files a lawsuit against you, you'll need to respond to the lawsuit even if you're confident that the statute of limitations has passed. In your answer to the court, you'll need to state that the statute of limitations bars the plaintiff's complaints. Nevertheless, the statute of limitations isn't the only affirmative defense you can raise. You could raise other types of defenses, such as the debt collectors having insufficient documentation to prove that they own the debt.

If it's your first time receiving a notice of complaint and summons from the court, you may find the process of responding to a debt collection lawsuit a bit hectic. This is where SoloSuit, a step-by-step web app, comes in handy.

You can use the software to generate a legally-acceptable answer document in minutes. The only thing you need to do is accurately answer all the necessary questions. After that, you can print the Answer document and mail it to the court. Alternatively, you can have a SoloSuit attorney review the document and file it on your behalf for a small fee.

What is SoloSuit?

SoloSuit makes it easy to respond to a debt collection lawsuit.

How it works: SoloSuit is a step-by-step web-app that asks you all the necessary questions to complete your answer. Upon completion, you can either print the completed forms and mail in the hard copies to the courts or you can pay SoloSuit to file it for you and to have an attorney review the document.

Respond with SoloSuit

"First time getting sued by a debt collector and I was searching all over YouTube and ran across SoloSuit, so I decided to buy their services with their attorney reviewed documentation which cost extra but it was well worth it! SoloSuit sent the documentation to the parties and to the court which saved me time from having to go to court and in a few weeks the case got dismissed!" – James

Get Started

>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

>>Read the NPR story on SoloSuit: A Student Solution To Give Utah Debtors A Fighting Chance

How to Answer a Summons for debt collection in all 50 states

Here's a list of guides on how to respond to a debt collection lawsuit in each state:

The Ultimate 50 State Guide

Debt collector guides

Are you being contacted by a debt collector? We’re making guides on how to resolve debt with each one.

Arbitration

If the thought of going to court stresses you out, you’re not alone. Many Americans who are sued for credit card debt utilize a Motion to Compel Arbitration to push their case out of court and into arbitration.

Below are some resources on how to use an arbitration clause to your advantage and win a debt lawsuit.

Bankruptcy

Bankruptcy is a great way to legally resolve debt, but it's usually best to consider it as a last resort. Here are some bankruptcy guides to help you decide which debt resolution option is best for you.

Check your case status

Don’t have time to go to your local courthouse to check the status of your case? We’ve created state guides on how to check the status of your case throughout the US, complete with online search tools and court directories.

Credit

Debt has a big impact on your credit. Below is a list of guides on how to repair and improve your credit, even while managing major debt, along with other credit-related resources.

Debt collection FAQs

Find answers to some of our the most commonly-asked questions about debt collection below.

Debt collection documents and templates

If you're dealing with debt, these documents and templates will help you respond, protect your rights, negotiate, and resolve your debts.

Debt relief

We’ve created a specialized guide on how to find debt relief in all 50 states, complete with steps to take to find relief, state-specific resources, and more.

Debt settlement

Debt settlement is one of the most effective ways to resolve a debt and save money. We’ve created state guides on debt settlement. Find out how to settle in your state with a simple click and explore other debt settlement resources below.

Eviction

Facing an eviction? The following guides will help you navigate your situation with confidence.

Federal debt collection laws

Knowing your rights makes it easier to stand up for your rights. Below, we’ve compiled all our articles on federal debt collection laws that protect you from unfair practices.

Legal aid

Helping people find access to justice is at the heart of Solo's misison. If you're dealing with a legal debt issue, the following guides will help you through it.

Medical debt

Having a health challenge is stressful, but dealing with medical debt on top of it is overwhelming. Here are some resources on how to manage medical debt.

Personal finance

Learn how to manage your finances and overcome crushing debt. Check out our personal finance guides below.

State debt collection laws

Debt collection laws vary by state, so we have compiled a guide to each state’s debt collection laws to make it easier for you to stand up for your rights—no matter where you live.

Statute of limitations on debt

Like all debt collection laws, the statute of limitations on debt varies by state. So, we wrote guides on each state’s statutes and more.

Stop collection calls

Do you keep getting calls from an unknown number, only to realize that it’s a debt collector on the other line? If you’ve been called by any of the following numbers, chances are you have collectors coming after you, and we’ll tell you how to stop them.

Wage garnishment

Forgot to respond to your debt lawsuit? The judge may have ordered a default judgment against you, and with a default judgment, debt collectors can garnish your wages. Here are our guides on how to stop wage garnishment in your state, plus other wage garnishment resources.

The Debt Hotline

Hosted by Team Solo, The Debt Hotline breaks down debt and personal finance topics with help from attorneys, financial experts, and industry pros. We respond to real questions to help you navigate debt with knowledge and courage.

Other debt resources


It only takes 15 minutes.

And 50% of our customers' cases have been dismissed in the past.


"Finding yourself on the wrong side of the law unexpectedly is kinda scary. I started researching on YouTube and found SoloSuit's channel. The videos were so helpful, easy to understand and encouraging. When I reached out to SoloSuit they were on it. Very professional, impeccably prompt. Thanks for the service!" - Heather



Get Started


Contents

Affordable Legal Help
Trustpilot

Respond to Your Debt Lawsuit

Get your professionally reviewed Answer in minutes. No expensive lawyers needed.

loading...
Get My Answer
Affordable Legal Help
Trustpilot

Respond to Your Debt Lawsuit

Get your professionally reviewed Answer in minutes. No expensive lawyers needed.

loading...
Get My Answer
loading...
Get My Answer