Legal Question in Credit and Debt Law in California
A friend 3 1/2 yrs ago borrowed $7k..He would not sign the promissory note for wording which I changed 3 times then wrote personal note and still would not sign. He has agreed he owes and has paid little here & there writing re-payment of personal loan. Have phone message where he stated he admits to the loan and will repay. He makes at least $100k a year, he has said when he gets tax return will pay off, when he got settlement from selling his business will pay off but never came through. I can get proof of annual income.Sends me $20 -$40 here and there. Current balance is $5800. Will this hold up in small claims for his games on his meanial payments or as long as he is sending something it's considered he is making payments. Want to go to small claims & if win will garnish his wages.
2 Answers from Attorneys
If you never got it in writing, you are a year and a half past the deadline to file an action to collect the debt. The statute of limitations on oral contracts is two years, as is the limitations for "money had and received."
The time of the running of the statute will start when there is a breach. So, if you are within 2 years of the last payment or the last time he said he would not pay you, then you should still be okay. Sometimes, evidence of any payments on a loan will suffice to show that the loan has written evidence. Thus if the check says for "payment on loan' that may satisfy the judge that a contract exists.
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