When does the statute of limitations begin on a personal loan?

Get Legal Help Today

 Secured with SHA-256 Encryption

When does the statute of limitations begin on a personal loan?

Is it at the time of the loan or at the time of the last payment? A personal loan of $5,000 was made to a family member by a check with the word “loan” written on the memo line of the check. 1 year after the loan, 10 monthly payments of $100 were made. After that, and without any notice, payments decreased to $25 a month.

Asked on July 5, 2011 under Bankruptcy Law, New Jersey

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Okay so what I am gathering from all of this is that there was no note or other evidence of a written agreement that stated the amount of the loan, the amount of interest, the amount to be repaid and the term of the loan in general, correct?  So now you want to establish what the repayment agreement was but really I can not figure it out myself from the amount of information you have given here.  You also did not state when you made this loan.  What you have is a contract for repayment of a loan agreement.  Yes, it is a contract even if it is an oral contract.  It is just harder to prove the terms.  But in New Jersey the statute of limitations is 6 years.  Good luck.


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.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption