COLLECTION LAWS – PENNSYLVANIA (PA)
(1) Pre-Judgment Interest Rate: In Pennsylvania, the pre-judgment interest rate is governed by 41 Pa.C.S. § 202. The statute provides that the pre-judgment interest rate is calculated at the rate specified in the applicable contract or agreement, or at the legal rate of interest prescribed by 41 Pa.C.S. § 202 for a particular type of debt. If no interest rate is specified, the legal rate of interest is 6% per annum.
(2) Post-Judgment Interest Rate: The post-judgment interest rate in Pennsylvania is determined by 41 Pa.C.S. § 8101. According to this statute, the post-judgment interest rate is equal to the prime rate as listed by the Federal Reserve Bank on the first business day of January, plus 1%. The interest rate is adjusted annually on January 1st.
(3) Statute of Limitations for Written Contract: The statute of limitations for bringing a legal action based on a written contract in Pennsylvania is four years, as outlined in 42 Pa.C.S. § 5525(a)(8). This means that a party must initiate a lawsuit within four years from the date of the breach of the written contract.
(4) Statute of Limitations for Oral Contract: Pennsylvania’s statute of limitations for enforcing an oral contract is four years, according to 42 Pa.C.S. § 5525(a)(1). Similar to a written contract, a lawsuit must be filed within four years from the date of the breach of the oral contract.
(5) Statute of Limitations for Open Account: For open accounts, which involve an ongoing credit relationship, the statute of limitations in Pennsylvania is four years, as established by 42 Pa.C.S. § 5525(a)(8). The four-year period begins from the last transaction or the last item on the account.
(6) Statute of Limitations for Contract for Sale of Goods: The statute of limitations for bringing an action related to a contract for the sale of goods in Pennsylvania is four years. This is governed by the Uniform Commercial Code (UCC) – 13 Pa.C.S. § 2725.
(7) Statute of Limitations for Promissory Note: The statute of limitations for a promissory note in Pennsylvania is six years, according to 42 Pa.C.S. § 5527. Legal action to enforce a promissory note must be initiated within six years from the date of default.
(8) Statute of Limitations for Enforcement of Domestic Judgment: Pennsylvania law sets a five-year statute of limitations for enforcing a domestic judgment. This means that a judgment creditor has five years from the date the judgment was entered to pursue enforcement. The relevant statute is 42 Pa.C.S. § 5529.
(9) Statute of Limitations for Enforcement of Foreign Judgment: The statute of limitations for enforcing a foreign judgment in Pennsylvania is five years, as prescribed by 42 Pa.C.S. § 5528(a). To enforce a foreign judgment, a judgment creditor must take action within five years from the date of entry of the foreign judgment.
(10) Garnishment Exemptions: Pennsylvania has specific exemptions regarding garnishment. Some of the common exemptions include a certain portion of wages, certain public benefits, pensions, and retirement accounts. The specific exemption amounts and details can be found in the Pennsylvania Wage Payment and Collection Law (PWPCL) – 43 P.S. § 260.1 et seq.
Disclaimer: Please note that the presented content is an outline of legal regulations, serving as a general overview rather than an exhaustive representation of comprehensive statutes. It is crucial to recognize that this outline does not constitute “legal advice.” Moreover, it is important to acknowledge that subsequent changes to the listed statutes may occur subsequent to this publication. It is recommended to consult an attorney in the jurisdiction to confirm the information is up-to-date and accurate.