Legal Question in Credit and Debt Law in California
collection on a loan
i loaned my friend $10,000 at 9% per annum in 2000. i assumed it was for a year. she still is not able to pay me anything yet. she tells me she will at some time when she has the money. how do i get a judgment against her or am i able to attach to her residence she owns?
i have a signed agreement. is that enough? since we are still friends, do i need some other documentation from her? re: when it will be paid back? before i pursue legal action?
2 Answers from Attorneys
Re: collection on a loan
If the loan was 8 years ago, you have a problem with the statute of limitations if she has not paid anything. Ask her to make at least a $50.00 "good faith" payment. Try to get it via money order or check. Give her a receipt for cash, have her sign it, and make sure the receipt shows the 10k due minus the 50 payment with the balance of $9,950.00. That will renew the statute. Then you can sue her. If you are friends you may want to forget the whole thing because you may lose your friendship.
Re: collection on a loan
When were payemnts supposed to have been made on the loan? If your friend has never made payment and the loan did not specify a date of repayment, you may be out of luck. The statute of limitations on filing suit for breach of contract (such as this promissory note) is four years from the date of breach or last payment, whichever is later.
Assuming you are within the statute of limitations, then you should locate an attorney to file suit on the debt and obtain a judgment. Once judgment is obtained, collection should be made.
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