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Phillips Esq.
Phillips Esq., Attorney-at-Law
Category: Real Estate Law
Satisfied Customers: 19324
Experience:  B.A.; M.B.A.; J.D.
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I live in Arizona. 6 year statute of limitations on written

Customer Question

I live in Arizona. 6 year statute of limitations on written contracts. 6-1/2 years ago I stopped making payments on my pickup truck. The bank has never filed suit or attempted to collect on the loan. Have you ever heard of a quiet title action for non real estate. The bank cannot enforce the note, so it would seem the collateral cannot be collected upon.
Submitted: 2 years ago.
Category: Real Estate Law
Expert:  Phillips Esq. replied 2 years ago.
Hello: This is PhillipsEsq. I am a licensed Attorney and I will be assisting you today.
I live in Arizona. 6 year statute of limitations on written contracts. 6-1/2 years ago I stopped making payments on my pickup truck. The bank has never filed suit or attempted to collect on the loan. Have you ever heard of a quiet title action for non real estate. The bank cannot enforce the note, so it would seem the collateral cannot be collected upon.
Response: Regrettably, your assumption is not correct. Eventhough the bank cannot file lawsuit against you for the past due payment because of the running of Statute of Limitations, the bank can use other methods to enforce the debt. The bank can repossess the truck.
Statute of Limitations on a debt deals with the time a creditor/collector has to file a lawsuit to collect on its debt or forever barred from bringing the lawsuit. It does not mean that the creditor can no longer enforce the debt. The creditor may still use other means to try to collect the debt such as telephone calls, letters, and repossession of the collateral.
You cannot do a quiet title action on the car loan. The lender's security interest did not expire because of the running of Statute of Limitations on the debt. The security interest on the car is still valid and cannot be voided through a quiet title action. The lender can still repossess the truck at any time.