Personal loan to a friend in Massachusetts

[mikemain1]

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

In 2002, a friend and I engaged in a personal loan of 600,000 with a promisary note signed by both parties. Return payments were to be 5,000 a month; 60,000 a year. As of this instant I'm not entirely sure what the plan was for interest- it's been a while..

To my recollection, I was payed back 3 years worth of the loan (~180,000). The last payment I received was in 2005. He started going through financial problems, and mental problems, so I wanted to try to not ruin his life.

During the sale of my business, and lots of other financial matters I was dealing with at the time, I neglected to pursue this matter at the time.

Is it too late for me to try and retrieve the rest of my principle (and potentially interest?) or am I beyond the statute?

 

[quincy]

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

In 2002, a friend and I engaged in a personal loan of 600,000 with a promisary note signed by both parties. Return payments were to be 5,000 a month; 60,000 a year. As of this instant I'm not entirely sure what the plan was for interest- it's been a while..

To my recollection, I was payed back 3 years worth of the loan (~180,000). The last payment I received was in 2005. He started going through financial problems, and mental problems, so I wanted to try to not ruin his life.

During the sale of my business, and lots of other financial matters I was dealing with at the time, I neglected to pursue this matter at the time.

Is it too late for me to try and retrieve the rest of my principle (and potentially interest?) or am I beyond the statute?

It is difficult to collect on a loan if you have no idea what was paid and what is owed.

There is a 6 year statute of limitations that seems to apply anyway.

 

[mikemain1]

It is difficult to collect on a loan if you have no idea what was paid and what is owed.

There is a 6 year statute of limitations that seems to apply anyway.

Much shorter than I was expecting. I have the ability to look for and find the exact numbers and dates on all of this, but if a few guys come in and say that it's way beyond limitation, I might as well save the time.

 

[quincy]

Much shorter than I was expecting. I have the ability to look for and find the exact numbers and dates on all of this, but if a few guys come in and say that it's way beyond limitation, I might as well save the time.

You can still try to collect what is owed from your friend. The statute of limitations applies to the filing of a lawsuit.

 

[HRZ]

DO not assume it it too late...in general if you can sweettalk or jawbone some sort of fresh payment, even a token one, that keeps the time clock set at zero .....

 

[adjusterjack]

DO not assume it it too late...in general if you can sweettalk or jawbone some sort of fresh payment, even a token one, that keeps the time clock set at zero .....

You really need to be looking up state laws before you make comments because that is dead wrong for Massachusetts.

MGL 260 Section 13. No acknowledgment or promise shall be evidence of a new or continuing contract whereby to take an action of contract out of the operation of this chapter or to deprive a party of the benefit thereof, unless such acknowledgment or promise has been made by, or is contained in, a writing signed by the party chargeable thereby.

http://law.justia.com/codes/massachusetts/2016/part-iii/title-v/chapter-260/section-13/

 

[adjusterjack]

Much shorter than I was expecting. I have the ability to look for and find the exact numbers and dates on all of this, but if a few guys come in and say that it's way beyond limitation, I might as well save the time.

Yep, 6 years.

MGL 260 Section 2. Actions of contract, other than those to recover for personal injuries, founded upon contracts or liabilities, express or implied, except actions limited by section one or actions upon judgments or decrees of courts of record of the United States or of this or of any other state of the United States, shall, except as otherwise provided, be commenced only within six years next after the cause of action accrues.

http://law.justia.com/codes/massachusetts/2016/part-iii/title-v/chapter-260/section-2/

 

[HRZ]

Adjustjack is correct ...in part...a good many states require a debt reaffirmation to be in writing and signed ....but for a debt of $600,000 as started , I'd sure read my loan docuements ! A loan under seal in MA runs for 20 years ...that's often just (l.s. ) printed after the signature ...and many a form includes that set of letters. ..

And nothing prevents you from seeking a fresh signed agreement for the balance as you compute it ...borrower might just sign and return a document you have prepared ...have you tried ?

That said... I am not sure about the status of a loan in MA if you can jawbone or sweettalk some fresh actual payment .resetting the time clock to zero ...it is often treated as the most recent actual payment and the next missed payment sets the clock ...but as adjusterjack points out ...gotta use the MA details

 

[latigo]

It is difficult to collect on a loan if you have no idea what was paid and what is owed.

There is a 6 year statute of limitations that seems to apply anyway.

Are you really buying this yarn?
___________________________________

A friend and I engaged [?] in a personal loan? Both the friend and I signed the "promisary" note? To my recollection I was 'payed' [sic] back . . . . ?

Supposedly loaned six hundred thousand dollars yet is unsure of the balance and can't "recollect" the interest factor as if it wouldn't be spelled out in the "promisary" note?

My guess is that he is also unsure of - or can't quite recollect - just how much of the $180,000 "payed" was reported as interest income. Not to mention that he's probably lost track of the last time he laid eyes on the "promisary" note. Undoubtedly, if he was talking about real money instead of such a paltry sum he would have kept better records.

 

[quincy]

Are you really buying this yarn?

Haha. I admit to having some doubts about the story told.

 

[adjusterjack]

Haha. I admit to having some doubts about the story told.

Me, too. But it's 104 degrees outside and going to 116 today so I'd rather be inside reading funny stories.

 

[HRZ]

Well I sort of agree...most of us don't lose track of critical details of a $600,000 loan .....

 

[quincy]

Well I sort of agree...most of us don't lose track of critical details of a $600,000 loan .....

... and then come to a free advice forum with questions about it.

 

[adjusterjack]

Well I sort of agree...most of us don't lose track of critical details of a $600,000 loan .....

Maybe it's the rich guy from Nigeria.

 

[Zigner]

Maybe it's the rich guy from Nigeria.

No, he's already going to send that money to me, once he finishes processing the paperwork that I paid him $250 for.