Legal Question in Credit and Debt Law in California
I'm wanting to file a small claims on an individual that owes me $6,250.00. Is there a limit for a small claims suit??? Also, I want to start adding a 15% monthly charge to the amount owed. The original personal loan on good faith was over $8,000.00. As you can see the amount that has been paid over a 5 year period. Can I legally add a 15% monthly charge to the amount owed.
Thank you for your help with my questions.
Rita
Bakersfield, CA
2 Answers from Attorneys
Unless you have a contract that says otherwise, the court will give you 7% pre-judgment interest and that's it. But if you get a judgment, you get 10% interest on that. There is a legal time limit for filing suit, what that time limit is depends on the subject matter of a lawsuit. Usually for claims for money the legal time limit is two years on an oral contract or four years on a written contract. It's either two or four years from the date the most recent unpaid payment became due.
The current limit in small claims is $7,500. Mr. Stone correctly states the law of interest before and after judgment when there is no written agreement that states differently.
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