How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Roger Your Own Question

Roger
Roger, Attorney
Category: Bankruptcy Law
Satisfied Customers: 26588
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
6704987
Type Your Bankruptcy Law Question Here...
Roger is online now
A new question is answered every 9 seconds

I have a vehicle that I stopped making payments on in 2006.

Resolved Question:

I have a vehicle that I stopped making payments on in 2006. At that time, I thought I would be able to get in a better financial situation and make a settlement offer to the lender, but I haven't been able to. According to a current credit report, the lender took me to magistrate court in Idaho in 2006. The lender also charged off the account that year, closed it, and it was passed on to a collection agency. That collection agency has my pay status as "account paid in full, was a collection," and the account type as "open." I have not had any contact with the lender or collection agency for years, but would like to try to make a settlement and get the title to the vehicle. What avenues might I take?
Submitted: 2 years ago.
Category: Bankruptcy Law
Expert:  Roger replied 2 years ago.

Hi - my name is XXXXX XXXXX I'm a Bankruptcy litigation attorney here to assist you.

 

Under Idaho law, the statutes of limitations (contract is 5 years and judgment is 6 years) have expired or will expire sometime this year. Thus, the debt will not be collectible shortly. However, if you want to obtain a clear title to the vehicle, you're going to have to settle up with them.

 

Collection agencies are generally willing to take cents on the dollar in order to settle an account - especially an account that is no longer collectible because of the lapse of the statute of limitations.

 

IF you can offer a lump sum of to the creditor for around half of the amount due, you can probably get this resolved.

Customer: replied 2 years ago.

Thank you for that information. One quick follow-up: If I contact the collection agency about a settlement before the statute of limitations is expired, will it show up on my credit report and take another 7 years before it is taken off. Is that also a possibility if I pursue this after the SOL has expired?

Additionally, is repossession of the vehicle still possible after the SOL has expired?

 

Thanks much.

Expert:  Roger replied 2 years ago.

If you just contact the collection agency, it will not cause any harm to your credit report. Your inquiry should also not re-start the 7 year credit reporting under the Fair Credit Reporting Act. However, if you were to resume paying the debt on an installment basis it would re-start the obligation and reinstate the statute of limitations. In that instance, it would remain on your report. However, if you settle on a lump sum, the credit report should show the account as closed or even not appear after the time period is up.

 

If the creditor doesn't have a right to collect the debt, its right to the collateral/vehicle should have also expired. However, if you don't pay them off in full and resume payments it will re-start the statute of limitations and it would give the lender the right to repossess if you were to default.

Customer: replied 2 years ago.

I apologize, but I am confused by the last paragraph of your answer. Can you clarify or re-state it?

Thanks.

Expert:  Roger replied 2 years ago.

Sorry if I was confusing.

 

I you contact the lender and agree to repay the debt after the statute of limitations has lapsed, it re-starts the statute of limitations and makes you liable again and subjects the vehicle to be seized/repossessed.

 

Thus, if you're not going to offer a lump sum payment in full, agreeing to repay the debt would revive the debt. However, if you pay the debt off in full, the matter will be over and there would be no reason to worry.

 

But, if you offer to make monthly payments or some other installment, the statutes of limitation are restarted and you could be sued or the car could be repossessed if you defaulted again.

Roger, Attorney
Category: Bankruptcy Law
Satisfied Customers: 26588
Experience: BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
Roger and other Bankruptcy Law Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Meet The Experts:

 
 
 
  • FiveStarLaw

    Attorney

    Satisfied Customers:

    3203
    Bankruptcy Lawyer. Experienced.
< Last | Next >
  • http://ww2.justanswer.com/uploads/FL/FLAandNYLawyer/2012-1-27_14349_3Fotolia25855429M.64x64.jpg FiveStarLaw's Avatar

    FiveStarLaw

    Attorney

    Satisfied Customers:

    3203
    Bankruptcy Lawyer. Experienced.
  • http://ww2.justanswer.com/uploads/TL/tleeders/2012-6-13_204815_TSL1.64x64.jpg Terry L.'s Avatar

    Terry L.

    Attorney

    Satisfied Customers:

    2204
    Better Business Bur 15yrs bankruptcy experience. Chicago Bar
  • http://ww2.justanswer.com/uploads/mnphillips2/2009-03-13_203105_10984459-249293407.jpeg Phillips Esq.'s Avatar

    Phillips Esq.

    Attorney-at-Law

    Satisfied Customers:

    950
    B.A.; M.B.A.; J.D.
  • http://ww2.justanswer.com/uploads/CO/cortrightlaw/2011-12-5_4117_Kevin.64x64.JPG cortrightlaw's Avatar

    cortrightlaw

    Attorney

    Satisfied Customers:

    490
    Attorney practicing Bankruptcy Law including Chapter 7, Chapter 11, Chapter 12, and Chapter 13.
  • http://ww2.justanswer.com/uploads/Jay1968/2006-12-03_004423_JoeRossPhoto.jpg JoeLawyer's Avatar

    JoeLawyer

    Attorney

    Satisfied Customers:

    376
    Attorney in the practice of Bankruptcy Law since 1996
  • http://ww2.justanswer.com/uploads/DY/Dylatess/2012-9-11_1968_BHBTemplePhoto.64x64.jpg dylatess's Avatar

    dylatess

    Attorney

    Satisfied Customers:

    370
    35 plus years of experience specializing in bankruptcy law
  • http://ww2.justanswer.com/uploads/US/USLawAnswers/2012-9-20_23143_20090105211638Headshot3b.64x64.jpg Brent Blanchard's Avatar

    Brent Blanchard

    Bankruptcy Attorney

    Satisfied Customers:

    315
    Twelve years experience in all aspects of debtor & creditor BK.