Expert: Michael Brotherton - 1/7/2008

Question
Florida Statute of Limitations Bad Debt car lease

--------------------------------------------------------------------------------

URGENT PLEASE PLEASE HELP

Our daughter is being sued in Florida where she has lived since Oct. 2002 for an auto lease debt which originated in Georgia during Jan. 1999 and was written off Sept. of 2000. My daughter was going through a divorce at the time.

Since the divorce, her ex-husband has told her on several occasions that he settled the debt and satisfied if full with the understanding that the company would give up any right to collecting any monies from my daughter.

Well, we can't find her ex-husband now and Ford sold the debt to a collection agency in March of 2005.

Questions:

1. What is the statute of limitations in Florida with regard to this type of suit?

2. Does the fact the the lease was originated in GA effect any part of this? She has been living in Florida since 2002, and the suit was filed here in Florida.

3. If it is beyond the statute of limitations can you site the Florida statute that states that?

4. If it is beyond the statue of limitations what should my daughters next steps be?

5. If it is within the timeframe and the lawsuit is valid how does my daughter go about settelment? The amount is $2,900 and they are claiming $400 for process service, $750+ for attorneys fees, and 11% interest, plus all other court costs.

My daughter first believes that her ex-husband satisfied the debt but has absolutely no proof. The lawfirm that has filed the suit has refused our request for disclosure. (We don't have any paperwork, her husband has it).

Lastly, if we just don't have a legal leg to stand on, what is the best way to bring down the amount of the settlement? My daughter was abused in the marriage and we advised her to get away quickly as we were more concerned about her physical well being than material things. She has been supporting herself and her children on a very limited income.

Do you think they would settle this for $500-$700.

I am in desparate need to help my daughter. Please help me.

Thanks.

Answer
The statute of limitations on a written contract is 5 years from the date of last activity such as the last payment on the account. If they get a judgment prior to this they can extend that date indefinitely.The statute applies to the state where the debt originated. In Ga it is 6 years. If you cant prove there was a settlement in writing the debt will need to be paid. She can make an offer to settle in writing and make sure she gets something in writing to confirm the settlement. She may also attempt to make a payment plan. They may settle for 30-50% but you can offer pretty much anything. The settlement has to be negotiated. If she doesn't have any attachable assets she may be safe from attachment. In Florida I believe she can only be garnisheed if she makes over $500 per week. She can contest the suit but it is likely they can get a judgment. The only other option is bankruptcy.