Legal Question in Credit and Debt Law in New York

Re: Does a personal loan contract expire?

It sound like you prepared a "do it yourself" contact because there is no mention of an attorney who prepared the agreement. You need to consult with an attorney and have someone review the contract and advise you whether it is valid and whether the interest rate is o.k. or usurious (i.e., more than permitted under NY law).

There are time limits for bringing suit depending on the nature of the claim involved. In NY the time limit to sue for breach of contract is generally six (6) years subject to certain exceptions. That doesn't necessarily mean that this applies to your situation, because as per prior paragraph without having seen your contract can�t determine if you even have a valid contract.

In any collections situation such as the one you face delay is the enemy of recovery. Once a claim goes into default the longer you wait to pursue recovery the lower your chances of actually recovering anything. Aggressive pursuit of the claim at an early stage increases your chance of recovery.

There are a number of steps short of a lawsuit that could be taken immediately to try to increase your chances of getting repaid, particularly if your friend�s company ultimately fails or goes into bankruptcy. If your "friend" is really a true friend he/she should cooperate with you in ensuring that your concerns are met and that you are given adequate assurance of repayment. There are various legal ways to accomplish this and increase your likelihood of getting repaid.

In terms of pursuit of the claim, engaging an experienced NY collections attorney to handle your matter is advisable. You want one who is experienced in collections, bonded for claims referred, has malpractice insurance and is AV rated.

Check out our website for additional info on collections topics in the Frequently Answered Questions (FAQs) at http://www.starrandstarr.com/faqs.htm

You can also learn more about our collections practice at http://www.starrandstarr.com/commercialcollections.htm.

Feel free to contact us for a free initial consultation at 8888678165.

Good luck,