personal loan statue of limitations

[kour1]

What is the name of your state?PA My wife and I borrowed $10,000 from a bank in 1992 or 1993 to pay off bills and home improvement. This was a different bank than we borrowed for our mortgage. Since then we were divorced in 1994 and the home was forclosed on and resold shortly after foreclosure. My x-wife took care of all details of foreclosure and told me we were in the clear as far as the mortgage and loan was concerned. I have never heard from either bank since 1994 and neither debt has ever shown up on my credit report but recently received a letter from a lawyer regarding the $10,000 loan saying I owe $13,000 from interest acrued since 2000. Am I still responsible for this debt and is there a statue of limitations?

 

[Debt Guy]

You are still responsible for the debt even if it is past the statute of limitations. Being SOL is merely an affirmative defense to a lawsuit. It does not make the debt go away.

PA statute of limitations is 4 years. It begins to run from the date of default. Based on what you have said the debt is out of statute.

However, you need to find out if a judgment has been entered. Judgments hang around a really long time.

My advice is to write a letter to the attorney and just say "I disupte this debt". If there is a judgment, you should get a copy from the attorney.

If there is no judgment and you are sued, you will need to file a response with the court that the debt is time-barred.

Also, get a copy of your credit report and see if this debt is being reported.

 

[zippysgoddess]

Yes, you definitely need to check, in PA this type of judgment is good for 20 years, with 6% additional interest on the total, and it can be renewed.