Legal Question in Credit and Debt Law in California

Does a jointly signed promissory note affect SoL?

In about 1990, I signed a promissory note for ~$10,000 (jointly liable with a friend). This loan was provided for by his relative. I have always had California residency, but I believe it was signed in Connecticut, and possibly executed under NY or CA law (I do not have a copy of it).

I have heard some rumblings, and he may want to ask to collect it. He has claimed in the past that he made a payment (in 1994, I think), but I do not believe it. I have three questions:

1. Does a jointly-signed promissory note affect the statute of limitations? That is, if he made a payment but I have never made a payment (I was later told that it was a gift), would that reset the statute of limitations for the note? Or is the SoL specific to each borrower? This was so long ago, and I was told it was a gift, it seems silly to bring it up 16 years later. Or does my SoL differ from his?

2. If he has been acting with his relative in a way that discriminates against me (i.e. making a $10 payment to reset the SoL), is there anything that I can do about this?

3. If his relative wrote off the loan as a bad debt, can he/they still try to collect it?

Nothing has yet begun, but I just would like to know where I stand.

Thank you.


Asked on 4/07/06, 1:46 pm

1 Answer from Attorneys
Robert F. Cohen Law Office of Robert F. Cohen

Re: Does a jointly signed promissory note affect SoL?

As you know, CA statute of limitation is four years from the last payment on a written agreement, two years on an oral one. I believe the NY statute is longer. I don't know about the CT statute. You might post for NY and CT attorneys regarding the statutes of limitation in their respective states. If it is beyond the statute of limitations, then it is uncollectible. If they file suit, then you might demurrer or file a cross-complaint against them for violating the Fair Debt Collection Practices Act by unlawfully attempting to collect a debt. Good luck.

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Answered on 4/07/06, 4:18 pm


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