Legal Question in Credit and Debt Law in Florida

I'm sorry to hear about the situation. The company in Indiana might file a lawsuit against your husband either in Indiana or in Florida. The time limit in which the company has to file a lawsuit would probably be governed by Indiana law, not Florida law. I believe that Indiana law states that the time limit is 6 years, while under Florida law it would be only 5 years. The time limit begins to run from the date of the breach of the contract. In your husband's situation, this would probably be the date of the last payment.

If they do file a lawsuit, then it is likely that they would obtain a judgment against your husband for the unpaid amount of the loan. Once they have a judgment, they could try to collect from your husband's assets. However, the good news is that everything that your husband owns may be exempt from collection under Florida law.

Your husband may also want to think about filing bankruptcy. This would probably wipe out the debt from Indiana entirely. He would have to speak to a bankruptcy attorney in your area to see if he is a candidate for bankruptcy based on his total assets, income and debts, and whether this would have any other negative ramifications.