Recovering money loaned

[Bravest Dog]

What is the name of your state? CA

I loaned approx $3,500 in 5-8 payments in 1998-99 to help a woman friend pay her rent...she was desperate and recieved the money from me quickly.

We never had a written contract, only verbal, only the check stubs remain on my part as record. She told me she would pay me back immediately, but never did. She has lost her records of amounts recieved and amounts paid back.

She has paid back only a small amount.

I have the check stubs of money loaned to her.

She has approx $25,000 equity in a home worth $125,000.

My questions:

1. What should I do to record what was loaned to her? Should I ask her to send me a letter stating such?

2. How can I recover the amount if she refuses to pay me?

3. How much interest should I charge?

4. Are there any statute of limitations of time that I must act on?

5. Can you add anything else that I should know?

 

[nowpastdue]

I am NOT an attorney.

Pretty much you are out of luck.

Statute of limitations in CA for verbal contracts is 2 years, Code of Civil Procedure Section 339. Even if you had a written contract it is 4 years.

You may want to contact the "Small Claims Advisor" in each CA county courthouse to verify this.

Sorry.

 

[racer72]

[Homer Simpson] DOH! [/Homer Simpson]

 

[JETX]

Though the statute of limitations has expired, you might be able to get her to reaffirm the debt (and reset the SOL clock).

Send her a very nice letter reminding her of the debt and detail the amounts loaned and the payments that she made. Include a separate document asking her to review the 'accounting' and to sign and return it to you confirming the amounts and the loan. Provide a stamped, self-addressed letter for her return. You might even include an 'inducement' to waive any accrued interest in the event that she returns the letter within 10 days. Be creative..... after all, you are trying to turn a loss into a win.

I have seen LOTS of people actually reconfirm the debt.