Legal Question in Credit and Debt Law in Texas

Statute of Limitations

I had a car reposessed from a manufacturers lease in early 1999, with a balance due after the car was disposed of. After no contact from the 3rd party collector in over 2 years, now I am being threatend with a lawsuit. In both my state (where the contract was signed) and the state where the repo occured, my read of the law indicates a four year statute of limitations to bring action. Both state laws say the clock begins running when the default occured, or should have been know to the creditor. Do I possibly have a valid defense?


Asked on 9/10/03, 12:01 pm

2 Answers from Attorneys
Sharon Campbell Sharon K. Campbell

Re: Statute of Limitations

Yes, you have a defense. Some attorneys take the position that suit can be filed, even if outside the statute of limitations - that statute of limitations is an affirmative defense which must be raised. Even if they don't file suit and statute of limitations has expired, creditor and/or collector can still try to collect debt and it may stay on your credit report for seven years from the date of last activity.

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Answered on 9/10/03, 12:07 pm
Peter Bradie Bradie, Bradie & Bradie

Re: Statute of Limitations

Probably.

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Answered on 9/11/03, 10:25 am


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