<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by ssn:
In CA is the statue of limitations on a promisory note. Is it from the time it is signed (the person was given six months to pay) or when time expires for repayment? Can a promisory note be turned over to a collection agency if it was signed by private parties (individual & non-profit organization)? I was told a judgement must first be filed, what does this mean?
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My response:
The SOL on a California promissory note, or for that matter, any written contract, is 4 years from the date of inception, or 4 years from the date of last payment. So, you can sue at any time you like if the terms and conditions of the Note are not followed - - as long as your lawsuit is filed within 4 years as noted above. For example, if payments on the Note are supposed to be made on a monthly basis, and paid in full by a certain date, if a payment has been missed during the term of the Note, the entire balance due on the Note can be "called in". If the balance due is then not paid, you can sue - - as long as your lawsuit is filed within 4 years from the date of last payment. In other words, you don't have to wait for the ending date of the Note, if payments during the Note's life were specified.
Sure, there are some Collection agencies that will buy the Note from you. However, be aware that such purchase will be for "pennies on the dollar". That's one of the ways how collection agencies make their money.
As I intimated above, you need to file a lawsuit, win the lawsuit, and a judgment in your favor will be entered. It's up to you to collect on the judgment. If you don't know how, and you want to sell the judgment, again, there are collection agencies and other companies that will buy judgments - - but, it's for pennies on the dollar.
IAAL
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