Legal Question in Credit and Debt Law in Texas

Car repo

i let a car go back and now I'm being sued for the differance of 18k, they also said a lein will be put on my home and I will recieve a 1099A for IRS purpose and I will be forced to pay taxes on the 18k. They have said they would settle for 6k and wipe the slate clean. Would the 1099A still be in affect and if so what would that do to my taxes? If so would it be for the 18k or 6k.


Asked on 4/02/08, 9:08 pm

1 Answer from Attorneys
Sharon Campbell Sharon K. Campbell

Re: Car repo

One step at at time. First, how long ago was your car repossessed? The statute of limitations for suit on a debt in Texas is 4 years. Second, even if it is not time barred, they have to get a judgment against you first. Do not assume they will be able to do so; if you hire a consumer lawyer to represent you, there is a good chance you will win. If you win, no debt is owed, so no 1099.

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Answered on 4/02/08, 11:10 pm


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