Legal Question in Credit and Debt Law in Illinois

Statute of Limitation on a Personal Loan

What is the Statute of Limitations in IL on a loan made to a friend. There was no written contract, unless the checks that I gave her each month are considered a contract. I wrote the word ''loan'' in the memo section on each check, but there was no actual loan agreement. I loaned my friend $2000 to $3000 each month for the past 2 years, so the total is now over $60000. Is there a Statute of Limitations & since I gave her a check each month what date would I use to calculate the Statute of Limitations?


Asked on 2/20/09, 4:50 am

1 Answer from Attorneys
Thomas Moens Moens Law Offices, Chartered

Re: Statute of Limitation on a Personal Loan

The statute of limitation for an oral contract is generally five years. The memo section really means very little. Did you have any kind of discussion that these were loans and not gifts? There is probably a good argument that each month's check should would be a new loan. By the way, if you need a new friend.....

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Answered on 2/20/09, 4:41 pm


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