Q: On April 2, 2012, when I was on disability, I had a auto loan & returned a vehicle, 'cause I couldn't afford it no more.
On April 27, 2012, they sold the vehicle. About 1 year later on my credit report it showed that the company had put it as a charge off and it was at a zero balance. On April 27, 2019, it dropped off my credit report and it was not longer listed. Now, today, December 9, 2019, I received a summons from the courts from them saying that I am now being sued for the remaining balance. Can they do this, is this legal?
It could be legal, but maybe not because it sounds like the debt may be past the statute of limitations. The statute of limitations in Michigan for a suit to collect a debt based on a written contract is 6 years. The limitations period begins to run when the debt goes into default, not later when the car is repossessed.
I'd recommend you get a consult with a debt collection defense or bankruptcy attorney in your area to review all of the relevant facts and go over your options. You may have a defense to the suit. Feel free to contact me online if you would like to discuss.
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