Legal Question in Credit and Debt Law in Washington
Personal Loan
My fiancee had signed a promisorry note with his ex-wife in 1993, written in the state of WA. The loan was apprx. $9500.00. It has been paid down to apprx. $4800.00. The loan was from the ex-wife's parents. The loan states, if not paid on time, interest of 10% per annum will apply. The couple stopped paying on the loan in 1995 with no response from the lenders one way or another. The ex-wife has teamed up with her parents trying to collect only from the ex-husband. The parents sent a written ledger to the ex-husband, listing each year, with every payment made from 1993 to present. The ledger's writing has been identified as the ex-wife's and appears to be written out in one sitting, without any receipts to back up the loggings. After speaking with a local attorney, we found the statute of limitations to be 6 years on this note. The ex-wife claims to have made one payment in 2003 without any receipt of proof. The parents now want to collect, including interest. They came up with a total of over $16,000. The ex-husband is willing to pay half of the original balance in good faith, but the lenders will not accept the offer. Does the statute of limitations apply in this case & can the interest be collected. Thank You!
1 Answer from Attorneys
Re: Personal Loan
The Statue of limitations has expired for a debt on a written instrument incurred in 1993 and the last payment made in 1995 with no further payments.
Her parents should have begun collection formally to toll the statute by 2001 at the latest. As they didn't appear to do that they are probably not going to run up a huge interest judgment now. However, I think you are missing the point. The issue is what the dissolution decree says about the debt and when that decree was entered. (That could get around the limitations problem and you did not say when the disso was final). In Washington parties are required to list their debts and their creditors in the final decree. The debt was incurred by the marital community - correct? If the debt was incurred by the community then both parties are responsible for the debt. If your fiance gets sued, he can implead his ex and ask for contribution, and - at least in Washington, she'd have some 'splaining to do. The obligation is as enforceable against her as it is agaist him.
If the parents file suit, you should probably consult with counsel in this case as the defenses are wrapped into questions of community property and this is not do-it-yourself law. Good Luck.
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