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mcriman · Mar 23, 2009, 04:24 PM

About 5 years ago I took over a personal loan that was my mom's before she died. It is in my name. I owe about another $24,000 over the next several years and have been paying on it monthly. The state of Michigan has a Statue of Limitations of a loan of 6 years. The $200 a month I've been paying is draining me and was wondering if I discontinued paying on this loan after the 6 years are up, can I go before the judge and request that the case be dismissed because the SOL has run out?

JudyKayTee · Mar 23, 2009, 04:53 PM

The Statute of 6 years runs from when the last payment is made and only means that the creditor has 6 years to sue you.

If you take out a 10 year loan that does NOT mean that after 6 years you don't have to make payments.

Statute runs from the last activity on the loan - when did you make the last payment? More than 6 years ago?

You need an Attorney to explain how "Statute" works.

Fr_Chuck · Mar 23, 2009, 06:43 PM

Many things, first you don't go before the judge unless they sue you.

But if you stopped paying today, and they did not sue you for the next six years, then they can not sue you, but they are allowed to bill you and try to collect for the rest of your life, merely can not sue you.

But for a large amount, you can expect them to sue, get a judgement, with the judgement it stops any SOL rules. And allows them to garnish pay checks, attack bank accounts and more.

I guess my question is why did you assume and take over a loan for someone else.