Legal Question in Credit and Debt Law in Maryland

charge-off account

My father co-signed a car for me. I defaulted and he became the responsible party. Listed on my credit as joint account, my name only name on title. My father assumming the responsiblity filed bancruptcy and my loan was included. My loan was listed charge-off on my credit. The loan company never contacted us again. Now almost 6 years later the loan company sold it and now the new company is trying to collect from me. Is this legal, sincce my father assummed responsibility like co-signers do and it was discharged in bankruptcy? Can the loan even be sold under these conditions? Sounds like Double-jeapordy to me.


Asked on 5/04/01, 1:18 pm

1 Answer from Attorneys
Lawrence Holzman Holzman Law Firm, LLC

Re: charge-off account

In maryland, there is a three- year statute of limitations which may or may not apply to your facts. If the three year statute of limitations has passed, then suit against you may be barred if it is properly raised as an affirmative defense in any lawsuit.

Bankrutpcy does not discharge debts except as to the filing debtor himself. Thus, if someone other than the person who filed bankruptcy is also liable on the contract the discharge will most likely not apply to them and they can remain liable on debts.

Lawrence R. Holzman, Esquire

Joseph, Greenwald & Laake, P.A.

6404 Ivy Lane, Suite 400

Greenbelt, MD 20770

(301) 220-2200

fax (301) 220-1214

Disclaimer: Please note that the posting of this response is not intended to constitute legal advice. You should contact an attorney to obtain information applicable to your situation. This posting is not confidential or privileged and does not create an attorney/client relationship.

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Answered on 6/19/01, 12:31 pm


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