My boyfriend financed a car about 6 years ago. It broke down, and he had it towed to a shop. They did a diagnostics on it. A total of $140.00 w/ the towing and diagnostics. It ended up it would cost $4,000.00 to fix. He didn't have the money to pay for it. The shop put a lien on it. The car didn't work so he didn't pay payments on it. Well now 6 years later, his ex wife calls and she received papers saying she needs to go to court, and possible garnishment of wages, keep in mind she was the cosigner. They have not tried to contact him for repayment. Any advice? He doesn't even know where the car is.
2007-03-06 09:36:17 · 3 answers · asked by mimi941 1 in Business & Finance ➔ Credit
Who is suing him - the finance company for the auto loan or the mechanic?
Either way, if it has been 6 years, your boyfriend and his ex are probably outside of the statute of limitations (SOL) for collecting.
A repo collecting SOL is 4 years from the date of the sale that created the deficiency. It is 4 years IF both your boyfriend and his ex were provided with all of the legally required notices before and after the repo sale. If they were not provided all of the required notices than the SOL for the repo would be 2 years.
You should check your state statutes if it is the garage that is suing, but it may fall under the UCC for goods and services with a 4 year SOL.
Either way, your boyfriends ex should file an answer to the summons and include an "affirmative defense of SOL" in her answer. And, possibly file a counterclaim against them for filing on a time barred debt.
I hope that your boyfriend will stand by his ex in this, morally and financially, since it was his doing that put her in that position.
I would strongly suggest that she see an attorney about it and that she file her answer within the time allowed so they do not get a default judgment against her.
2007-03-06 17:42:17 · answer #1 · answered by echo 7 · 0⤊ 1⤋
This is NOT complicated. You friend abandoned the car and defaulted on the loan. He owes the bank and if they can get his ex-wife to pay they will. She can then turn around and sue him for whatever she pays. If she does, she will win. The shop contacted the bank about the lien and the bank paid the $140 to get the car back. They then sold it for whatever they could get without repairing it which probably just about covered the cost of the sale. Any remainder was applied to the loan and he and/or his ex got sued for the difference.
Edit: Echo 6 years is well within the statute of limitations in many states. I promise you the bank knows EXACTLY when the statute expires. If the ex-wife actually received paperwork from the court, I seriously doubt the statute has expired.
2007-03-06 19:52:55 · answer #2 · answered by STEVEN F 7 · 0⤊ 0⤋
Well, what do you expect. He defaulted on his agreement to pay for the vehicle. Just because it broke down doe's not mean that he doe's not have to pay for it.
If the ex-wife got a divorce and did not have your boyfriend refinance the vehicle in his name only, then shame on her.
I would bet that she will rat your boyfriend out to the lender, I know I would.
2007-03-06 17:47:40 · answer #3 · answered by ? 7 · 1⤊ 1⤋