Legal Question in Credit and Debt Law in Texas

Old Auto Loan - can I be sued

I assumed an auto loan of a family member in 2001, I caught up the payments and paid on it for more than a year. The car was wrecked by a co-worker who was drunk and on illegal drugs. He did not have my permission to drive the vehicle. I was ill and intoxicated, the co-worker was trying to be nice. The loan was never offically transferred to my name. The vehicle was destroyed before I could have it evaluated for faulty workmanship. It had a lot of recalls and I believe the accident could have been a result of a faulty part because a collection agency is calling him trying to collect the debt. It was written off in 2003 and sold to this agency in 2007. I filed Chapter 7 in 2006, but did not include this debt because it was not in my name. Today 2008, I am being threatened with a civil suit by the original owner. Can I use the SOL defense? I am thinking he only had a year to sue for non-payment, am I correct?


Asked on 3/23/08, 7:41 pm

1 Answer from Attorneys
Sharon Campbell Sharon K. Campbell

Re: Old Auto Loan - can I be sued

The statute of limitations for suit on a debt or contract is 4 years. It is possible the owner may have a defense of statute of limitations if the default was more than four years before the lawsuit was filed.

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Answered on 3/25/08, 11:36 pm


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