Car repossession back in 2004. Difference in payment/amount sold is around $4,000. Summoned to court, nothing came out of it. Just ended up having to met with the legal assistant and explain that I couldnt pay it (long story) Was told that it was fine, but interest would still be applied to the bill. Just got a letter saying that it is now $6,000 +. Court date was only a couple months ago. Statutes of limitation for debts in my state is 5 years. Can I wait for the time to run out? What can happen?
2007-10-22 13:41:33 · 4 answers · asked by Susan F 4 in Business & Finance ➔ Credit
I was summoned to court to explain why I had missed a previous court date for the same thing. I explained to the judge that I was unaware of the original court date and all that was discussed was meeting with the assistant. I know that if you fail to appear judgement is made against you.
2007-10-22 16:35:58 · update #1
You can wait but it does hurt your credit and besides its 5 yrs from the date of the court date not the date of the repo.Typically they sell it at auction and charge what the car does not bring so say you owed $4,000 and the car brought only $2,500 well they are going after you for the attorney fee's + the $1,500 the car did not bring.They seem to be charging you interest so you're next move is to do nothing or asked them what happened to the car and why the payment is now going up when it sold again that should have been taken off the amount you owe.
2007-10-22 13:50:17 · answer #1 · answered by D H 3 · 0⤊ 0⤋
You first stated you were summoned to court and nothing came of it. and then you state you just got a letter saying that it is now $6000+ but the court was a couple of months ago. My question is, did you go to court? If you did, did the judge make a judgement? If yes, this item does not go by the statute of limitations anymore and will only clear until you pay the judgement in full. Judgements run out in 10 years, however they can be re-upped or otherwords re-activated. Once it is paid, it will not drop off your credit report until 7 or 10 years later from the time it was paid in full. I'm having a brain fart right now and can't remember. The statute of limitations is the amount a creditor has to take you to court. If it goes over that time, they legally can't and if they do and you can prove it's over the SOL, it gets dismissed.
2007-10-22 15:46:06 · answer #2 · answered by Anonymous · 0⤊ 0⤋
I recommend going to court for your new court date.
If the legal assistant was with the courts the judge should already have the information. I am wondering did you sign a stipulation with the legal assistant and now failed to pay? If so, the creditor requests a new court date and the judge will give them a judgment. From there the creditor files a wage garnishment (if allowed in your state), levies your bank accounts and puts a lien on your property.
In addition, the SOL (of 5 years) does not apply to a judgment. Even if it did apply, that is still a few years away and the creditor is obviously is going to pursue what ever means necessary to collect on the debt.
2007-10-22 17:01:45 · answer #3 · answered by Amy 5 · 0⤊ 0⤋
Did you get an paperwork from that meeting with the legal assistant? Are you sure that wasn't arbitration and you have a judgment against you?
You may want to check with the court to see if there is a judgment. Sometimes collection agencies pull a fast one and tell you, it's okay you don't have to go to court. Then when you don't show up, they get a default judgment.
If there's a judgment against you, they can garnish your wages, attach you bank account, and lien your property. Judgments are good for 10 years and can be renewed.
2007-10-22 13:58:49 · answer #4 · answered by bdancer222 7 · 0⤊ 0⤋