Car Repossessed, Now Lawsuit

[latka]

What is the name of your state? MD

My car was repossessed in 1998. I got myself hooked into a 24% loan for an overpriced car from a shady dealer. The repossession was reported to all 3 bureaus and for 7 years my credit was ruined. Earlier this year the information disappeared from my credit reports and I was finally free! (Here in Maryland, adverse information can only be reported for 7 years).

Alas, my freedom was short but sweet. The finance company (Credit Acceptance Corporation) started calling and mailing me. I ignored them.
I didn't and still don't have the nearly $7000 owed to them and surely I have suffered enough from 7 years of bad credit.

The local sheriff's department recently served me with a summons to appear in court on December 27th.

Only a few days after they filed suit, I received a letter from an attorney offering to help me file for Chapter 13. I don't know how he knew about it???

Had I foreseen this, I would have filed for bankruptcy years ago. I don't want to go through 10 more years of bad credit. It just seems so morose and twisted that a bad car deal should negatively effect my life for 17 years.

Anyhow, I have not worked in 13 months, I'm a FT college student and living off student loans. I couldn't pay them if I wanted to.

Please share your knowledge and advice. What are my options? Given all the facts, would a judge really grant them a judgement?

[ihatearizona]

From what I could research, it appears that the statute of limitations for Maryland is only 3 years on a written contract. If your last payment on the car was in 1998 then the statute of limitations would have run out in 2001. You have a defense!!!

Texas

I have a simialr situation. I bought a truck, overpriced and 23%apr in 1998. The truck was repo'd in march of 2000 I believe my last payment was about the same time. The original creditor and loan as well as the reposesion never appeared on any of the 3 credit bureaus. Sometime in 2002 or 2003 I started recieving letters and phone calls from Asset Acceptance ( AAC ) for what I am assuming is the balance of the truck after it went to auction. I don't believe they have ever told me flat out what I owe them money for other than possible defaulted loan. I know that the SOL for the loan should have expired. Does AAC count as a new debt? What can I do about this? How can I get them off of my Credit Reports?

Thanks in advance!