Legal Question in Credit and Debt Law in California

Under California law a debt is valid forever but if you sue past the statute of limitations (the legal time limit for filing a lawsuit), and they raise the statute of limitations as a defense in the lawsuit, you'll lose. On the other hand, many lawsuits are filed past the statute of limitations, the defendant doesn't answer or show up in court, and the plaintiff wins a judgment which is good for ten years or more. The time limit on suing for debts on contracts is two years in the case of an oral agreement and four years in the case of a written agreement.

Another "Microsoft Tech Support" answer from Mr. Stone, completely correct, but also provides nothing that answers the actual question. For the reasons stated in Mr. Stone's "answer" regarding statutes of limitations, the person you owe the money to will be unable to enforce the debt two years after payment is due, if the loan agreement was entirely oral, or four years after the payment is due if there is a written memorialization of the agreement. Just in case they file an action to enforce the debt, but fail to serve it right away, it might be wise to hold the payment funds for another year, but that is a judgment call.