What is the statute of limitations on collecting monies on a car repossesion?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What is the statute of limitations on collecting monies on a car repossesion?
Asked on August 3, 2011 New York
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
This would be an action on either a contract (the loan agreement) between the lender and borrower, or on a promissory note, if the loan was evidenced by a promissory note. In either case, the statute of limitations in New York State is six years. Statute of Limitations count forward from the date of the breach, default, or violation, not from the date the loan or obligation was incurred; thus, the creditor or lender in this case has up to six years from when the borrower (the car owner) first defaulted on the loan or failed to make payment to sue for additional money. The lender can only get whatever balance is left after (1) having applied all the payments the borrower did make; and (2) after having applied whatever the repossessed car brought in when sold or auctioned (less certain expenses of the repossession and sale).
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.