Do I have to repay a personal loan back 10 years after it was forgiven?

[m5zealot]

What is the name of your state (only U.S. law)? California

Hello,

About 10 years ago a friend loaned me $3,000.00 to help me get back on my feet. I lost my job and was ready to live on the street. After about a year of steady employment I advised him I was ready to start paying him back. He had just got a large inheritance from his grandmother and told me (verbally) "not to worry about it anymore." He forgave the debt and our friendship continued with no incident.

Last month he wanted to add cash flow to his Ebay business and asked me out of the blue if I could pay back the loan 10 years ago? I was shocked and then angered. He did practically save my life but I just wasn't ready for that. He makes very little money off his business and he wasted all his inheritance on a car. He refuses to get a job and still lives at home with his mother. (He is 43 years old.) I have fallen into hard times again on the verge of losing my job and told him there was no way I could pay him back at this time. I know the right thing to do is give him whatever I can but legally, can he collect on this forgiven debt after 10 years in court? Thanks What is the name of your state (only U.S. law)?

 

[JETX]

I know the right thing to do is give him whatever I can but legally, can he collect on this forgiven debt after 10 years in court?

So, let's see if I understand this right.... you were down on your luck, about to go on the street and a 'friend' was kind enough to LOAN you $3000. Of course, you appreciated his kindness. And when he said 'you can forget repaying' (of course there is NO proof of that, right?), your 'inner honer' agreed and you didn't repay his kindness.
Now that he has again asked for the money back, you still intend to repay his kindness by 'stiffing him'.
Just wanted to make sure I understood......

You will owe this debt forever and your 'friend' can continue to ask (and hope) you become a responsible mature adult.... but the time allowed (Statute of Limitations) to FORCE payment by legal action has expired. Simply, he can't force you to pay the debt after 10 years.

 

[m5zealot]

Thanks for the reply. I was not planning to stiff him at all. First of all I did not ask him for help or money. He offered. I'm just in a situation where I may not be able to pay my own bills in the next few weeks due to lay offs. I have not told him I won't pay him back. He is a little bit of an a**ss and I'm afraid if I don't pay right away he will take me to court. He would sue his own mother. I may need time to get my finances back in other before I can start paying.

Maybe it's just me but, if I forgave a debt to anyone, I could never ask for repayment after ten years have past. Especially if it was a friend or relative. Thanks for the legal info on the statute of limitations, if he does take me to court I guess I have that on my side at least.