Why am I now receiving a letter about my repossession that occurred about 4 years ago?
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Why am I now receiving a letter about my repossession that occurred about 4 years ago?
It is a deficiency letter and it states the amount of my debt I owe.
Asked on June 18, 2012 under Bankruptcy Law, Virginia
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
In Virginia, legal action may be taken on failure to pay money owed per a written agreement up to 5 years after the default, or failure to pay. When property, like a vehicle, secures a debt, the lender does not need to accept possession of the property as payment in full of the debt; rather, if the property is worth less than the current balance of the loan, the lender is entitled to seek payment of the difference or deficiency. From what you write, it appears that the lender or its collections agency could seek to recover any deficiency from you, four years after the reposession.
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