Legal Question in Credit and Debt Law in Indiana

Co-Signer

My husband co-signed for a car loan at a dealership for his adult son sometime shortly before 2000. The car was repossed around 2000. We never heard from the loan company or bank. We possibly assumed incorrectly that once there was a repossion all was void because they had the car back for resale. 6 years later we have just been contacted by a finance company (not necessarily the company that my husband signed with) that there is a $10,996 due on this old loan. His son has not had contact with us for 3 years and is, we think, living in another state. We are not sure at this time where he is. My question is--isn't there a statute of limitations where something like this is concerned? The finance company mentioned that they are settling for a lot less and there are a ton of these loans that they've just gotten around to. Are we still legally bound to repay this?


Asked on 8/14/06, 7:36 pm

1 Answer from Attorneys
C. David DuMond Law Offices of David DuMond

Re: Co-Signer

The Indiana Statute of Limitation for breach of a written agreement is six years from the date of the breach. Write a letter to the collection agency, deny liability and ask them to explain their claim. ("We deny any liability for this account and demand to know the basis for your claim against us, and we particularly want to know when boy boy was in full compliance with the contract." The date of the breach would be the date your son stopped making payments, as agreed. Good luck.

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Answered on 8/15/06, 10:57 am


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