NOT LEGAL OR FINANCIAL ADVICE
This content is for educational purposes only. Laws change frequently and vary by circumstance. Always consult a licensed attorney in your state before taking any legal action. We are not responsible for any decisions or actions taken based on this information.
Pennsylvania Freelance Invoice Laws
General information about collecting unpaid invoices in Pennsylvania
Last Updated: 2025-01-01 • Always verify with a Pennsylvania attorney
Late Fee Limit
No statutory limit for B2B contracts
Interest Rate
6% per annum (legal rate)
Small Claims Limit
$8,000
Statute of Limitations
4 years for written contracts, 4 years for oral
Additional Context
Late Fees: Late fees must be reasonable and specified in the contract. Courts may reduce unreasonable fees.
Interest: Parties can agree to higher rates. Pennsylvania has no usury cap for business loans.
Small Claims: Magisterial District Courts handle small claims up to $8,000. Philadelphia uses Municipal Court. For larger amounts, file in Court of Common Pleas.
General Best Practices
These are general suggestions, not legal advice. Consult an attorney for your specific situation.
- ✓ Use written contracts with clear payment terms
- ✓ Specify late fees and interest rates in contracts
- ✓ Send invoices promptly with detailed descriptions
- ✓ Document all client communications and approvals
- ✓ File in Magisterial District Court for quick resolution
Common Mistakes to Avoid
- ✗ Waiting beyond 4 years to pursue collection
- ✗ Not knowing Philadelphia's different court system
- ✗ Filing in wrong magisterial district
- ✗ Not including late fee provisions in contracts
- ✗ Skipping demand letters before filing
When to Consult an Attorney
For invoices over $8,000 (exceeds small claims) or disputes involving complex contract terms.
Frequently Asked Questions
What is the small claims limit in Pennsylvania?
Pennsylvania Magisterial District Courts handle claims up to $8,000. Philadelphia uses Municipal Court. Filing fees are typically $50-$125.
How long do I have to sue for an unpaid invoice in Pennsylvania?
You have 4 years from the invoice due date for both written and oral contracts. Don't delay—the sooner you act, the better.
What interest rate can I charge in Pennsylvania?
The legal rate is 6% per annum. You can specify higher rates in your contract. Pennsylvania has no usury cap for business transactions.
How does Philadelphia court differ from the rest of PA?
Philadelphia uses Municipal Court instead of Magisterial District Courts. The process is similar but forms and filing locations differ.
Do I need a collection license in Pennsylvania?
No state license is required for collecting your own debts. Third-party agencies should comply with FDCPA and any local requirements.
Sources & References
These are reference sources only. Laws change—verify current statutes before taking action.
- Pennsylvania Consolidated Statutes Title 42
- Pa. Rules of Civil Procedure
- Philadelphia Municipal Court Rules
- Pennsylvania Judiciary - Magisterial District Courts
IMPORTANT LEGAL DISCLAIMER
This is NOT legal or financial advice. The information on this page is provided for general educational and informational purposes only. It is not intended to be, and should not be construed as, legal, financial, or professional advice.
Laws change frequently. State laws, court rules, and regulations are subject to change without notice. The information presented here may not reflect the most current legal developments or may not apply to your specific situation.
Consult a licensed professional. Before taking any action based on the information on this website, you should consult with a licensed attorney in Pennsylvania who can provide advice tailored to your specific circumstances.
No attorney-client relationship. Viewing this information does not create an attorney-client relationship between you and Happy Freelance Life or its creators.
No liability. Happy Freelance Life and its creators disclaim all liability for any actions taken or not taken based on any information on this website. You assume full responsibility for any decisions or actions you take based on this content.
If you need legal help, please contact the Pennsylvania State Bar Association for attorney referrals or a legal aid organization in your area.
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Take the QuizThis information is for educational purposes only and does not constitute legal advice. Consult a licensed Pennsylvania attorney for specific legal guidance. This page was last updated on 2025-01-01. For current legal information, consult the official Pennsylvania state statutes or a licensed Pennsylvania attorney. Happy Freelance Life is not a law firm and does not provide legal services.