Legal Question in Credit and Debt Law in California
trying to collect on a loan that i made 3 years ago
Please Help me !!
I have been trying to collect on a debt for a loan that i made 3 years ago to a friend.
We did not have written agreement between us.
He only made 2 to 3 payments at the begining in august and september 2003.
He since lost his job and stop making payments.
He has a big property and i know that he has built up a lots of equity.
I have been asking him for the last few months to pay off his debts with me, but i have not been successfull getting my money.
At this point ,i am very frustrated and feel hopeless.
I was told by another friend that there is a statute in the state of california ''2 years is a limitation time '' to collect on a debt.
If that is true ? if ity is
Then what other options do i have for me to collect my money.
Thank You Very Much for Taking this Question...
3 Answers from Attorneys
Re: trying to collect on a loan that i made 3 years ago
Do you have or can you get a written confirmation of the debt? How much was the loan? Call me directly at 16192223504.
Re: trying to collect on a loan that i made 3 years ago
If you get him to agree in writing to pay the debt, or you get him to make a small payment, the clock will restart. Otherwise, the statute of limitation might bar you from a lawsuit.
Re: trying to collect on a loan that i made 3 years ago
Probably not true. Here's why: The statute of limitations (SOL) on enforcement of an oral agreement is generally two years from the date of breach, and on enforcement of a written agreement is four years from the date of breach. Here, it is unclear when the date of breach is, but let's presume that the date of breach is September 2003, when your friend made the last payment.
In this case, you will argue that you had an oral agreement which was transformed into a written agreement by the execution, delivery, and acceptance of the two payments. (Presumably, they were by check, yes? If not, then this argument likely fails).
Or, you allege a common count and argue that the delivery of the payments (again, presumably, the payments were by check or other written instrument) was an acknowledgement of the debt, thus triggering a four year statute as opposed to a two year statute.
Best case: Get your friend to admit (letter, email, anything in writing) that the debt exists. This will almost undoubtedly bring the best back into the SOL.
If the debt is within the jurisidiction of Small Claims, sue there now. If not, find an attorney familiar with collection law.
Good luck.
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