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When does the Statute of Limitations start for a default on loan secured by a vehicle?

Pflugerville, TX |

In 2008, I defaulted on a vehicle loan. Later in 2008, this vehicle was repossessed. A creditor recently called me and stated that if I didn't pay he was going to sue me. I advised him that I was under the impression that the Statute of Limitations had passed. His rebuttal was that it wasn't, cause the vehicle wasn't sold at auction until 2009. My question is, is this true? Do the statue of limitations start the day I fail to make a payment or the day the lien holder sells the vehicle? Also, I bought the car in California, but has it repossessed in Washington. I know live in Texas. Which state's Statute of Limitations do I go by?

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Filed under: Lien Sued for debt
Attorney answers 2


You have to look at the contract for the forum clause which applies to which state has jurisdiction. I suspect it will be California, but you need to read it.


Contact a consumer law attorney in your area by visiting the web site for the National Association of Consumer Advocates, a local attorney may have the best advice, especially since we know who the creditors are, who they use for collection, how serious they are when they make these threats, and how easily (or not) you can work out a settlement. Good luck.

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