f I walked away from a mobile home over 5 years go, what are the consequences for not paying the amount owed?

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f I walked away from a mobile home over 5 years go, what are the consequences for not paying the amount owed?

I bought a new house when I walked away. Several different collection agencies have have tried to collect the debt. Also, I was offered a $4k payoff when it was alleged that I still owed over $30k, how is this possible? I don’t have the extra money but aside from this mobile home loan, my credit is great.

Asked on December 5, 2012 under Bankruptcy Law, Illinois

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

How long someone can try to collect a debt like this is effectively defined by how long they have to sue you, since that is how long they have to legally enforce it. The time to sue, or statute of limitations, in your state for a debt arising out a loan agreement is 10 years; therefore, the collections agencies still have around another 4 - 5 years to pursue you. If you do not pay, they could sue you; if you do owe the debt, they will presumably win; if they win and still don't pay, they could put a lien on your home, garnish your wages, take money from a bank account, or have the sheriff or other court officer seize and sell other property of yours, like a car. It will also damage your credit. As to why they offered a small payout amount--that probably reflects that they do not believe you can or will pay, and so were willing to take a smaller amount so as to get something.


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