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Judgements SOL using Buisness Consumer Code

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I am hoping that someone can shed some accurate leagl insight into my situation. I am active duty airforce and have been made aware of a petition for a defeciency lawsuit. I have yet to be served. I know that the petition has been filed and should recevie a summons soon. The petition seeking a judgement against me is for a car that was repossessed and auctioned off in may 1998. My x-wife was awarded the car in our divorce decree in 96 but of course that does not release me from obligation to pay. I have not made any attempt to pay this debt even before it was auctioned off ensuring that I would not extend the SOL. According to my research, the SOL for this in Texas would have expired in may 2002.....4 year SOL. That is using just the date the vehicle was sold, not the last deliquency date. The attorney representing the bank said they will be pursuing the SOL of 6 years under the Buisness Commerce Code a.k.a UCC. The bank is not under an FDIC takeover which to my understanding is where that would fit in. The lawfirm said they are treating this car loan as a negotionable instrument? Which I thought was a check, draft e.t.c. Nevertheless, I thought that I would be protected under the SOL of 4 years in Texas.

Not to mention they did not follow proper procedure for the sale...I was never notified, never given the chance for buy back, or to be present at the sale.

Someone please clarify this SOL

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First of all, when the vehicle was repo'd it made the original contract null and void. It became just another unsecured debt subject to the TX 4 year SOL. BUT, UCC SOL for collecting for a deficiency is 2 years, and since they didn't follow the rules after the repo, as you noted, they pretty much blew it there.

I'll have to dig around in the UCC for that 2 year deficiency rule - or you could go over to www.cardreport.com and post the question for WhyChat - he knows this one pretty much inside and out. There is a thread there about the SOL/UCC code and it is in reference to an auto repo.

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Maybe this will help also:


§ 16.051. Residual Limitations Period

Every action for which there is no express limitations period, except an action for the recovery of real property, must be brought not later than four years after the day the cause of action accrues.

Acts 1985, 69th Leg., ch. 959, § 1, eff. Sept. 1, 1985.


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