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03-24-2006, 02:03 PM
| | Junior Member | | Join Date: Mar 2006 Location: Central NY
Posts: 5
| | | 11 year old debt
What is the name of your state? NY
In 1995 had a vehicle repossessed for late payments. Balance of vehicle was $4600 due after sold at auction. This creditor reported this to our credit report and had no inquiries for payment of amount due but initially stating what happened to vehicle and amount outstanding. was on credit report for seven years and then taken off. In 9/2004, an attorney contacted us to make payments. We agreed to pay $30/month. Recently I believed that they (Attorney) could not collect such an outstanding debt from 11 years ago. Does anyone know if this is true? Are we still liable for such an old debt? I have to respond by beginning of April as to what I am going to do. Could someone who really knows help me. Thank you. |
03-24-2006, 02:11 PM
| | Senior Member | | Join Date: Oct 2005
Posts: 1,529
| | | Could you please tell us whether a deficiency balance judgment was taken after the auction, and have you made any payments since 2004? |
03-24-2006, 06:41 PM
| | Junior Member | | Join Date: Mar 2006 Location: Central NY
Posts: 5
| | | Balance Judgement?
If there was suppose to be some kind of paperwork after the repo, there wasn't. Just a notification like a 1099 and a letter stating what happened and this money was owed. Nothing was ever said or done since then until this attorney contacted us. We had not made any payments until 9/2004 because he told us we would go to court and sue us. We agreed on $30/month, but because we felt threatened. After reasoning this out, not sure if what they are doing is legal. |
03-24-2006, 06:49 PM
| | Senior Member | | Join Date: Jan 2005
Posts: 2,336
| | | It is very likely that your $30 per month payments have restarted the statute of limitations.
It is not illegal to collect on a debt that is out of statute. The SOL is merely an affirmative defense in the event you are sued. Generally, any payment after the expiration of the SOL will restart the time clock for the SOL. |
03-24-2006, 06:59 PM
| | Senior Member | | Join Date: Oct 2005
Posts: 1,529
| | | I'm sure DG is right. What's more, as much as I would like to think that professional colleagues wouldn't stoop to it, unless the attorney agreed (in writing, I hope) that interest was capped, you're going backward.
At $30/mo., you're not paying annual interest accrual. Without an agreement to stop interest, you'll never pay this off. Post-judgment interest is 9% in NY. On $4,600, that $414/yr. or $34.50/mo. |
03-24-2006, 07:11 PM
| | Senior Member | | Join Date: Feb 2002 Location: Nashville,TN
Posts: 15,706
| | Quote: |
Just a notification like a 1099
| Wait -- DID you get a 1099-c ?? If so, for what, specifically ??
If there was no judgment and they issued a 1099-c, then you owe NOTHING on this debt, the 1099-C is CANCELLATION OF DEBT ! I suggest you dig around find out EXACTLY what you got.
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