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my mom cosigned for a car for me. some months later she filed for bankruptcy and the car was repossessed. this was 7 years ago. today i get a letter in the mail stating i still owe 10,000. i never got any previous notices about this. what is the next step for me to take. new jersey
In New Jersey the Statute of Limitation is 6 years for all types of debts and since the debt has passed the SOL period, you are no longer required to pay it off. Moreover since the seven year listing period is also about to expire and it will get removed from your credit report and your score will start improving. However, if you make any payment towards the debt now, your SOL will restart again and you may be required to pay off the entire amount.
Can you tell me whether the $10000, they claim, is towards the car loan debt? If it is so, then it must be for the difference in the amount for which the car has been sold after repossession and the amount which you owe to the auto loan company. But since the SOL has expired, you are not liable for the debt. You can ask for debt validation just to check the date of your last payment. But even if they validate the debt, you should not make any payment.
hello guys, thanks for your replies. the car was reposessed in jan or feb of 2002 (car was bought end of november 2001). she filed for bankruptcy so quickly after we acquired the car that i dont think we even had the chance to make first payment on the car. i also checked my credit score last night through transunion and didnt see any of it on my report besides the 3 credit cards that i have opened last year ('08) and have been paying on time. since it is past the SOL should i write the company and tell them it is past the SOL. i want this cleared up. thank you again. feb_17
Sorry to say this Feb 17 but I don't know if the SOL will play a role in your situation here. Most Auto loans have a clause right in the contract that states that if the you default on the loan then the vehicle will be reposessed and sold at auction. Then after the vehicle is sold at auction you will be responsable for the remaining balance. If it honestly took the vehicle that long to get auctioned off you actually just now are owing the remaining debt becuase you are not responsible for the debt until that happens. I would look into this a little further before just writing it off.