What can be done if a personal loan was made 7 years ago and payments haven’t been made?

UPDATED: Sep 2, 2011

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What can be done if a personal loan was made 7 years ago and payments haven’t been made?

A friend gave me a personal loan 7 years ago and is now demanding payment. She is threatening to go to her lawyer to have this issue resolved and I would like to know if anything can be done since the statute of limitations is 5 years.

Asked on September 2, 2011 under Bankruptcy Law, Missouri


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

When there is a dispute or possible claim for an unpaid loan, the issue--in terms of the statute of limitations--is not when the loan was made; it is when did the borrower default, or fail to pay? So if, for example, the loan was payable 5 years after it was made and you did not pay it then, then it would still be within a five year statute of limitations, since the default only occured two years ago (7 - 5 = 2). Or if the loan were payable on demand, the question becomes, when did she first request repayment, and you fail to pay? That would be the date of the default, and so the date used to determine if a legal action is now banned by the statute of limitations.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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