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Dwayne B.
Dwayne B., Attorney
Category: Legal
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Experience:  Began practicing law in 1992
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My wife bought a boat in 2003 as co-0wner with a friend who

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My wife bought a boat in 2003 as co-0wner with a friend who was named first on all documents. Deposit $17.5k financed $23.5k. My wife made payments until 2006. The other owner was supposed to make payments until loan was final on June 1, 2016. Showed up on my wifes credit report as collection for $16,000, then sold off and charged off now its been cleared from her report as its been 10yrs. Can they repossess after all this time
Submitted: 3 months ago.
Category: Legal
Expert:  Dwayne B. replied 3 months ago.

Hello and thank you for contacting us. This is Dwayne B. and I’m an expert here and looking forward to assisting you today. If at any point any of my answers aren’t clear please don’t hesitate to ask for clarification. Also, I can only answer the questions you specifically ask and based on the facts that you give so please be sure that you ask the questions you want to ask and provide all necessary facts. Please note: This is general information for educational purposes only and is not legal advice. No specific course of action is proposed herein, and no attorney-client relationship or privilege is formed by speaking to an expert on this site. By continuing, you confirm that you understand and agree to these terms.

Are you asking if the loan company can repossess or if the co-owner can take the boat?

If you are asking about the loan company, are they listed on the title as lienholder?

Customer: replied 3 months ago.
Asking about loan company and yes they are listed on title as lien holder
Customer: replied 3 months ago.
The loan agreement expired in June 2016 therefore shouldn't the written contract be offer. It was also charged off
Expert:  Dwayne B. replied 3 months ago.

Yes, they can still repo the boat.

While the statute of limitations has passed for bringing in a lawsuit (it is likely a 6 year statute of limitations for breach of contract), that doesn't mean that the money is not still owed and that the lien is not a valid lien.

Under the lien the company still has a presumptive right to repossess. If they sent your wife a 1099 for the debt write off then she might be able to sue to have their name cleared as lienholder under the theory that them repo'ing is equal to a "double recovery" but I've never actually seen anyone do that. It was a theory I was going to try on a case one time but it settled before the court ruled on it and at that time there were no cases indicating anyone else had tried it.

However, that approach would only work if she had been sent a 1099 because a "charge off" is just an internal accounting measure and actually has no legal effect on anyone's rights.

If your question has been answered then I'd offer my best wishes to you and ask that you please not forget to leave a Positive Rating so I receive credit for my work.

Of course, please feel free to ask any follow up questions in this thread. I want to be sure that all of your questions are answered. In addition, once you issue your Positive Rating the question will lock open and no longer time out so you can come back to it anytime in the future if you think of any follow ups.

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