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Texas statute of limitations??

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jd0422

Junior Member
What is the name of your state (only U.S. law)?
TEXAS

I bought a car in 01 with loan from the bank. Last payment made was in Aug of 03 and I think thats when it was charged off also. The car sold at auction in about May of 04. They did send me a certified letter I signed for sometime in 04 and just recently talked to them on the phone..

My question is when is or was the statute of limitations up on this? I have heard/read 4 years or something about 6 years??

When did that statute of limitations start? and what does that do for me if they sue me (they say they are)??
 


racer72

Senior Member
The Texas Civil Practice & Remedies Code provides a 4-year limitations period for types of debt. The charge off date was likely 180 days after the account became past due. Time to check your credit report to find out the exact date of charge off.
 

jd0422

Junior Member
Im almost positive it was charged off in Aug of 03.. So they are saying they are going to sue me.. if its past the SOL how can they sue me?
 

Chien

Senior Member
This may have been read this too fast, because the charge-off date is not going to be relevant, whether it was or wasn’t charged-off. You’re dealing with an auto deficiency balance and TX Uniform Commercial Code will control. Coincidentally, the SOL won’t be different, but the date from which it’s measured will be. It’s the auction date, so be sure it was “about May ‘04”. Even if the SOL is not applicable, they will have had to comply very strictly with all the other statutory requirements pre and post-sale, so also look at your statutes and that certified letter.

Check your dates carefully. Candidly, your post is a bit strange. You stopped paying in Aug. ’03 and it took them 9 months to get the car back and sell it?

If the SOL has expired, they still can sue you. You’ll have to assert the SOL as an affirmative defense if that happens. You’re still legally liable unless you successfully assert the defense. Only in Mississippi and Wisconsin does the expiration of the SOL extinguish the debt.
 

racer72

Senior Member
Im almost positive it was charged off in Aug of 03.. So they are saying they are going to sue me.. if its past the SOL how can they sue me?
Creditors do not charge off an account the same month a payment is made. Do not post back till you check your credit report. The actual charge off date could be 180 days after the vehicle was auctioned when the creditor knew what your deficiency amount was and ceased active collection on the debt. As stated, the SOL is a positive defense to a lawsuit, it does not mean you can't be sued.
 
Why are you just worrying about this now? Have you received a phone call, letter, etc. that makes you think you have been sued??

In addition to the other posts, which are all correct, remember that the creditor only has to file the lawsuit before the day the SOL runs out - you do not have to be served within the SOL period. Thus, if they filed the lawsuit before the deadline, they may trying to serve you.
 

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