Pennsylvania Debt Relief

Pennsylvania Credit Card Debt law limits the allowable time for creditors to sue over open-ended debt like credit card accounts to 6 years. This Statute of Limitations (SOL) begins when the debtor first misses a payment, but starts again if a subsequent partial payment is made. Debtors must be careful to send an answer to any received debt summons by certified mail within 20 days, or else a default judgment will be entered in the creditor’s favor.

Judgment Enforcement

Pennsylvania provides 20 years for the enforcement of judgments. Creditors may lien the debtor’s real property by filing a copy of the judgment with the appropriate Clerk of the Court of Common Pleas. The lien stays in effect for 5 years and may be revived before expiration. Pennsylvania does not allow for a homestead exemption and personal property exemptions are only $300.

However, the state does allow residents to keep their wages by prohibiting garnishment on debt judgments. Only taxes and child support debts may be satisfied through wage garnishment.

While the State of Pennsylvania does recognize a “confession of judgment,” a contract clause allowing for automatic judgment against the debtor, such clauses are not enforceable for consumer credit contracts.

Debt Settlement

Pennsylvania residents may wish to negotiate an interest free Debt Settlement payment plan to make payments on the debt, rather than letting the creditor levy their home and property. Debtors can save their homes, cars and other possessions through Debt Settlement, which is much easier on the debtors and helps to avoid bankruptcy.