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Christy, Attorney
Category: Legal
Satisfied Customers: 462
Experience:  Former General Counsel for nationwide corporation. Contracts, rental properties, business law.
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Im in California and in 11/02, I bought a car. On 9/7/04,

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I'm in CA and in 11/02, I bought a car. I was having problems making the paymens and around 4/07, I found a company that said it would take over payments on the car, which would still remain in my name, and at the end when the car was paid off, I'd sign over the title to them. This would ensure that there wasn't a negative rating on my credit report. It sounded great and they paid for about 3 or 4 months until they stopped paying on the car. I couldn't get a hold of anyone at the company for either the payments or the car. Per the last email I got from them, the car was in Louisiana and I never got it back before they disappeared . I just got a civil case summons in the mail for the money that was owed on the car plus interest at 10% per yr from date of default filed 10/1/08. From what I've read, this is just outside the 4 yr breach of contract in CA per the breach date of 9/7/04. My last payment should have been on 11/9/07. Am I still liable for payment and if so, how much of it?

You are correct; the statute of limitations on a written contract in California is 4 years from the date of breach. If you defaulted on the loan on 9/7/04, the statute expired on 9/7/08. In that case, the plaintiff can not collect anything at all from you.

Note, however, that making partial payments or admitting liability and trying to work out payment arrangements with the creditor can sometimes restart the statute of limitations. It would really be up to the judge to determine if that is the case.

You should answer the Complaint and file for a Motion to Dismiss with Prejudice based on the expiration of the SoL.

If I have answered your question, please click Accept. I am happy to answer follow-up questions if you need clarification.

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