Legal Question in Credit and Debt Law in California

Re: what is the statute in california

The general rule on th statute of limitations on California is two years from date of the breach on a verbal contract. With respect to loans, it generally starts from the last date that you made a payment. If you have made any payments within the last two years, your friend your file a lawsuit agaist an attempt to collect the judgment through wage garnishment and other means.

Re: what is the statute in california

Often people see the total figure and think, "There's no way I could pay all of that back." However, if they make incremental payments, a small amount now and when finances improve, a larger amount, it's soon possible to get back on track. You might want to see if your friend will agree to that. Also, if a good friend, some of the debt might be forgiven after you pay a substantial chunk and show some good faith. Otherwise, you might think about a bankruptcy if you have other debts as well (assuming you didn't pay them all with the money borrowed from your friend). Since you're asking about statutes of limitation, it seems that you don't intend to pay your soon-to-be former friend back.

Re: what is the statute in california

Correction: You do have a contract with her. Where there is no express oral or written contract, and the circumstances warrant the finding of a contract, the law will limply a contract.

Here, you borrowed money. There is no agreement re: payback, according to your posting. But the law will imply such an agreement. Unless you can establish that the money was a gift (and it doesn't sound like it, from your admission), then she can sue you for the minimum of the principal balance plus 10% statutory interest from the date it was due.

The statute of limitations in California is 4 years on a written contract and 2 years on an oral contract. The statute begins to run from the date of breach. Here, the date of breach will be the date that the money was due, or the date that you last paid on the account, whichever is later. If neither are applicable, then the date will be, at the earliest, the date that the loan was made. At any rate, if your friend loaned you the money via check or some other written instrument, I would expect her to argue that the four year statute applies, and thus, you would still be liable for repayment.

Good luck.

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