Legal Question in Credit and Debt Law in California

Re: Loan not paid back

You can sue them for the balance. We can review your documentation to see if you may have any problems in the lawsuit.

Re: Loan not paid back

Your remedies depend to a degree on the nature of the loan. Was it secured by anything such as business equipment, personal property or real estate? If it was, you may have rights to pursue the collateral for your loan without filing a lawsuit. Alternatively, if it is not secured by anything and was just a straight unsecured loan, then you need to look at who signed for the loan. If it was the two individuals opening the business, your approach may be different than if you loaned the money to a corporation the two people had formed (or llc, or other entity). Your options generally are to turn the debt over to a collection agency, or pursue collections yourself. A collection agency will charge you a percentage of the remaining debt, but will handle the collections until it is either uncollectible or has been collected. That generally includes filing a lawsuit if necessary. If you do this yourself, you need to first consult with an attorney to determine what you can and cannot do to collect the debt. As you work your way through this, you will very likely have to file a lawsuit against both people and pursue them through those collection means. In the end, you will need to weigh the cost (fees, time and frustration) against the actual chances of collecting from these individuals - if their business is failing, they may not have anything from which to collect the money owed to you. Good luck.

*Due to the limitations of the LawGuru Forums, The Gibbs Law Firm, APC's (the "Firm") participation in responding to questions posted herein does not constitute legal advice, nor legal representation of the person or entity posting a question. No Attorney/Client relationship is or shall be construed to be created hereby. The information provided is general and requires that the poster obtain specific legal advice from an attorney. The poster shall not rely upon the information provided herein as legal advice nor as the basis for making any decisions of legal consequence.*Due to the limitations of the LawGuru Forums, The Gibbs Law Firm, APC's (the "Firm") participation in responding to questions posted herein does not constitute legal advice, nor legal representation of the person or entity posting a question. No Attorney/Client relationship is or shall be construed to be created hereby. The information provided is general and requires that the poster obtain specific legal advice from an attorney. The poster shall not rely upon the information provided herein as legal advice nor as the basis for making any decisions of legal consequence.

Re: Loan not paid back

If you are going to file a lawsuit the statute of limitations for breach of an oral contract is 2 years, and for a written contract is 4 years.