Legal Question in Credit and Debt Law in Texas
car repo
6 years ago our car was repo'd and the company wrote it off as a loss that year. Then they sold the bad debt to another company. Now that company is sueing us for the bad debt. I want to know how long can a company wait before they can legally sue us for the debt.
2 Answers from Attorneys
Re: car repo
Suit, in Texas, has to be filed within four (4) years of the time the debt was due. Other states have different time limits. Some states look at a promissory note stretched over a term of years and start counting from the date the last payment was due. Check with a local lawyer for a solid answer.
Re: car repo
The creditor has 4 years from the date you breached the contract, ie 30 days from when your last payment was made. You should file a general denial asap and assert limitations. You should also consult a local lawyer about a suit against the lawyer who filed the case if it was filed outside the 4 year statute of limitations. If you are in the Austin/ San Antonio area I would be happy to discuss this with you.
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