QUESTION
Does bankruptcy statute of limitations apply to a co-signer?
Asked on May 10th, 2011 on Bankruptcy - Indiana
More details to this question:
My Father in law co-signed for his son over 10 years ago. His son filed bankruptcy and returned the car. We understand the bankruptcy does not cover the co-signer. However, if the 10 years have passed to collect on the debt, does the statute of limitation apply to protect the co-signer? It is $6000.00 and he's a 78 year old man on Social Security with a very decrepit property.
5 ANSWERS
Yes. A statute of limitations applies. To determine which state court law applies, you will need to review the credit card agreement.
Answered on May 17th, 2011 at 9:09 AM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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Statutes of limitation under California state law applies. The statue begins to run as of the breach, not as of when the debt was incurred.
Answered on May 13th, 2011 at 12:18 PM
Bankruptcy Attorney serving Hayward, CA
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Carballo Law Offices
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The statute of limitations is California law and has nothing to do with bankruptcy. If more than 4 years have passed since the car loan was not paid then the statute of limitations would apply as a complete defense if case a lawsuit is filed.
Answered on May 12th, 2011 at 12:29 PM
If the appropriate amount of time in your state has run for such a debt, the debt may not be collectible; further, social security is not subject to execution per 42 USC 407(a).
Answered on May 12th, 2011 at 11:45 AM
Consumer Bankruptcy Attorney serving Los Angeles, CA
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Orantes Law Firm
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The statute of limitations should apply to protect the co-signer, but it must be argued in response to the complaint. If the creditor files a complaint, serve it on the defendant who does not respond on time, the creditor will take his default and the statute of limitations defense would be lost such a defense is an "affirmative defense" and the defendant has to raise it on time to be protected by it. Your father-in-law should consider filing a homestead declaration to protect equity in his property, filing bankruptcy for protection or making sure he responds on time.
Answered on May 12th, 2011 at 11:45 AM