Expert: Ray A Miller - 12/29/2008

Question
QUESTION: My ex husband and I had an auto loan in 97. I was the primary on the loan. He signed second. We got divorced in 98. He had the car given to him in the divorce decree. About 3 years ago I was contacted by some agency different from the original creditors telling me that I owe them for the balance of the auto loan. I told them I don't have the auto and haven't since 97 when we separated; that my ex won it in a divorce decree. They have since stopped bothering me, with nothing negative being reported on my credit report. Today, 3 years later, I have been contacted by a totally different creditor saying I owe them for the same vehicle. Can this be true? Is there a statue of limitations on this debt? Wouldnt it be my ex who owes them for this vehicle if there isn't a statue of limitations? This debt is over 10 years old now. How long can this go on? How do I rectify this situation?

ANSWER: I am sorry.  I thought I had already sent information on this one but find that I have not.  Please let me know what state you live in and the delinquently date so I can research the statute of limitations. As far as the divorce decree in concerned, that would have to be something you and your ex settle in family court again.  Please send a follow up on the SOL information.  Thank you.

---------- FOLLOW-UP ----------

QUESTION: Ok, here goes. The delinquent date was originally in 99. I was living in Texas at the time. I was also living in Texas when we first purchased the vehicle and when we had our divorce finalized. I am now located in Virginia. Please let me know if you need any more information, please.

Answer
Texas Statutes of Limitation

   The Texas Civil Practice & Remedies Code provides a 4-year limitations period for types of debt. The SOL begins after the day the cause of action accrues, (Section 16.004 (a) (3)).

Virginia Statutes of Limitation

   Open account: 3 years from the last payment or last charge for goods or services rendered on the account.

   Written contracts (non-UCC): 5 years.

   Sale of goods under the UCC: 4 years.

   Virginia Judgments: 10 years, and renewable (extended) to 20 years.

   Foreign judgments: 10 years

According to this law, even using Virginia, you should be well in the clear.  To make sure, you might want to check with the Attorney General of Texas.

I hope this helps.