Legal Question in Credit and Debt Law in Virginia

Re: ''School'' Problems

I think the most important thing you said, if I understood correctly, was that you did not sign any contract...? Are you sure about that?

The statute of limitations for a verbal contract is only 3 years from the last date that services were provided or your last payment on the account, whichever is later. Since they have not filed a lawsuit yet (as I understand your description) additional time may go by before a lawyer actually gets involved and files a lawsuit. A collection agency does not have the authority to do ANYTHING except harass you on the phone or by letter, or hand it over to an attorney. Only an attorney can file a lawsuit.

Virginia law allows a lawsuit even outside the statute of limitations. YOU MUST show up and object. If you do not object, you lose the right to assert the SoL. Although proceedings in general district court are mostly verbal, not written, I would recommend filing a paper objecting to the debt under the SoL, sending a copy to both the attorney and the court. (However, BEFORE you do that, make sure that you have been validly served. Getting a copy in the mail is NOT good "service." Posted on your door IS. If you file a paper when they have failed to serve you properly, you could waive that. You can go look at the file in the courthouse to see what it says before filing anything. Look at the Sheriff's return notes on the reverse side of the form.)

More than likely, the case will be set for trial, and you will have to object both at the first court date and also at the trial again. But you have a good chance of defeating the claim on that basis... IF there is not a contract that you FORGOT about!

The problem with their promises is proving it. They will probably "forget" and will not agree with your version of events. Theoretically, their promises to get you financing MIGHT be a good defense (although it could be said that you would have had to pay back the financing eventually). THe problem is that it will be very hard to prove, if they deny it.

Re: ''School'' Problems

If you attended the vocational classes, you probably owe the money, although the amount of

$8000 would appear to be an exorbitant ripoff.