My husband has a loan and a credit card from 2004 and 2006 that he got and stopped paying for - for whatever reason (before my time) ... his credit reports from 2014 show that the last payments made were in march and August of 2009 and he was sent a defendant copy of court papers from general sessions court in June of 2016. We made a few payments and I got sick and have fallen a couple of months behind and I forgot about it... they took everything minus five dollars from three of our bank accounts. Is this legal since it is beyond the statute of limitations? Do we have a leg to stand on?
The statute of limitations for debt collection is 6 years. But it sounds like the creditor went to General Sessions court and got a judgment against your husband in 2016. That would have been the time to contest the debt. Once a judgement is obtained then the Statute of limitations is irrelevant. The SOL only means they have to either settle the claim within that time period or file suit in that time period; if they go beyond without filing suit then the SOL protects you. If in fact it's correct and they did get a judgement then they have 10 years to collect on the judgment; then they can renew it again.
If they did not get a judgement then the statute of limitations might have past. But the SOL clock resets itself any time a payment is made. So if the original debt was in 2004 and 2006 then the SOL would expire in 2010 and 2016. But if you made payments in 2009 then the clock resets to expire in 2015 and if you made additional payments later the clock again resets for 6 years from that date.
If they got a judgment and are collecting on it, you can file a motion in General Sessions to stop the garnishment or levy of your bank accounts and ask the court to set monthly payments that you can afford to pay off the balance.
Nothing in this communication should be construed as creating an attorney-client relationship. I provide this service for educational purposes only. I will take no action on your behalf unless you have hired me and a written retainer agreement is signed. I am licensed only in Tennessee and I strongly suggest you consult with an attorney in your city and state as Statute of Limitation deadlines can limit your recovery.
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