When does the statute of limitations begin on a personal loan?
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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 12 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.
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