Q: can we be sued for a car that was repossessed 20 years ago?
we received a call for my wife today who was a cosigner on the original loan. this person said they work for an arbitration firm and said since my wife did not respond to the letter they sent within the 30 days they were proceeding with filing judgement paperwork. problem is we never received a letter and they said that the original creditor was sueing my wife for breach of contract and attempting to defraud. they claim the original creditor didn't sell the car until 2007 when it was repossessed in 2002 and now they are saying that the original balance of $14k plus interest comes up to $52k to attorney and court fees. the lady said they are filing the motion for judgement and will be placing liens on our current car and bank accounts and that the judgment letter will be here in 45 days. I have more information but it is too much for this form.
A: there is a statute of limitations on debts, which sets a time limit for legal action to be taken. The statute of limitations for a car loan or breach of contract can vary depending on the jurisdiction and the specific circumstances of the case. However, it is highly unusual for a debt from 20 years ago to suddenly resurface and result in legal action.
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