Which State's Statute of Limitations Applies to Debt After You Move
I had a considerable balance on one of my credit cards that I opened from my home state in Texas. I moved to Nevada and took a job across the border into CA for a couple of years before I lost my job and defaulted. I moved back to Texas to get my feet under me at my parents house, but didn't change my drivers license until about 6 months ago.
My questions are:
What state will my SOL apply to?
Does it matter that my balance was acquired in Texas, even though my address at time of default was in NV?
For the sake of not giving too many personal details, let's assume my debt was over $12,000 on this card. What are my odds of being sued in Texas?
Many thanks to anyone would can shed light on this.
Re: Acquired Debt in One State, Moved to Another and Defaulted, then Back. S.o.l
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john4521
What state will my SOL apply to?.
I believe that would be Texas. And the SOL would have tolled for the time that you were not residing in the state. Meaning that the SOL stopped running when you left Texas and started again when you returned.
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john4521
Does it matter that my balance was acquired in Texas, even though my address at time of default was in NV?.
No, your credit contract is under Texas law.
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john4521
For the sake of not giving too many personal details, let's assume my debt was over $12,000 on this card. What are my odds of being sued in Texas?
Very good.
Re: Which State's Statute of Limitations Applies to Debt After You Move
A statute of limitations is normally regarded as procedural law, meaning that the statute of limitations of the forum state will apply to a lawsuit. Most states, however, have "borrowing statutes" that will apply the statute of limitations of the state in which the cause of action accrued, if that limitations period is shorter than the limitations period of the forum state. As you presently live in Texas, odds are any lawsuit would be filed in Texas. Texas has the following borrowing statute:
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Quoting Tex. Civ. Prac. & Rem.Code Ann., Sec. 71.031. Act or Omission Out of State
(a) An action for damages for the death or personal injury of a citizen of this state, of the United States, or of a foreign country may be enforced in the courts of this state, although the wrongful act, neglect, or default causing the death or injury takes place in a foreign state or country, if:
(1) a law of the foreign state or country or of this state gives a right to maintain an action for damages for the death or injury;
(2) the action is begun in this state within the time provided by the laws of this state for beginning the action;
(3) for a resident of a foreign state or country, the action is begun in this state within the time provided by the laws of the foreign state or country in which the wrongful act, neglect, or default took place; and
(4) in the case of a citizen of a foreign country, the country has equal treaty rights with the United States on behalf of its citizens.
(b) Except as provided by Subsection (a), all matters pertaining to procedure in the prosecution or maintenance of the action in the courts of this state are governed by the law of this state.
(c) The court shall apply the rules of substantive law that are appropriate under the facts of the case.
The question of whether Texas would apply a different limitations period will depend upon whether the creditor bringing the suit is deemed a foreign corporation, and the terms of your credit card contract.
Re: Acquired Debt in One State, Moved to Another and Defaulted, then Back. S.o.l
Thank you for the information. How would I prove that I had been in the state of Texas? Would this start officially when I registered my driver's license? I lived with my parents for about a year before getting my license changed.
Re: Acquired Debt in One State, Moved to Another and Defaulted, then Back. S.o.l
According to your post, you did not default on your credit card until some time while you were living in NV. That is when the SOL would normally accrue. But you were not in Texas so the SOL (whatever that period is determined to be) did not start to run until you returned to Texas.
Claiming that a SOL has run out is basically an affirmative defense to a lawsuit. You can't discharge a debt by claiming the SOL has run.
Since you have not yet been sued, there is nothing to prove (when you returned to Texas). I believe that the CC company has 4 years for debt collection. So you can wait to be sued or try to work something out with the CC company to pay off the debt. However, any payment you make will reset the SOL clock.