Legal Question in Credit and Debt Law in California

collect money loaned to a friend

we loaned $15,000.00 to a friend last february. unfortunately, we only made a verbal agreement that he will start repaying his loan within a year. it has already been a year now and he has not paid a single payment to us. now we are building our home and need the money for construction of the house. we called him and asked him to take a loan somewhere else but he has not made any attempt to repay our loans. now we might have to take a loan for construction of the house. on the loan we will be paying interest. here our friend has our money and he does not want to pay the interest to us either if we will take a loan. Now my question is if we will take a loan can we take him to court and have him pay for the loan & interest we will pay when we will take the loan?


Asked on 1/24/03, 10:49 am

2 Answers from Attorneys
Chris Johnson Christopher B. Johnson, Attorney at Law

Re: collect money loaned to a friend

You will need to sue your friend, likely, and get a judgment. The statute of limitations is normally two years on an oral contract, but the courts are more favorable to early actions than those filed by people who "sat on their remedies."

Read more
Answered on 1/24/03, 11:59 am
Frederick Choi Law Offices of Frederick H. Choi

Re: collect money loaned to a friend

You will be unable to force your friend to pay off the new loan, unless they made another agreement. You do have a right to sue for the original loan on the oral agreement.

Read more
Answered on 1/24/03, 1:28 pm


Related Questions & Answers

More Credit, Debt and Collections Law questions and answers in California