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TJ, Esq.
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In california: what is the statute of limitations if I owe

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In california: what is the statute of limitations if I owe a creditor money? What can they do to keep it going?
For instance, if they call every six months asking to work something out (no attorney), does that stay the statute?
Hello and thank you for the opportunity to assist you. My name is XXXXX XXXXX I will do my very best to answer your legal questions.

It depends on the type of debt. If the debt is like a credit card, car loan, or other similar breach of contract, then the statute of limitations is 4 years. No, the mere fact that the creditor called would not toll the statute of limitations. If you acknowledged in writing that you owed the debt, then that would restart the statute of limitations from the date of the acknowledgment. So, I would not sign anything that indicates that you owe the money.

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Customer: replied 3 years ago.

how about a loan from an individual to a company?


debt for services (work for hire animation, legal, internet service).


 

Hello again.

A loan is based on a contract, so the failure to pay a loan is a breach of contract. Accordingly, the statute of limitations would be 4 years. It doesn't matter whether the loan is from an individual to a company, from an individual to an individual, or from a company to an individual. It's all the same so far as the statute of limitations is concerned.
Customer: replied 3 years ago.

One last clarification:


1. Owing to a lawfirm: standard big lawfirm retainer / representation agreement signed. Bills owed. No effort to collect in last two years. Is the retainer/rep agreement (assume standard) a contract -- 4 years?


 


2. Owing to a vendor wherein there is no contract. Just invoices that were likely paid for a while and then payments stopped. No collection activity.


a. what's the statue if effort to collect was a couple phone calls with last call 2 years ago.


b. what's the statute if law firm retained?


 


3. What does toll a statute? Is it only active litigation?


 


 

Hi again.

1. Owing to a lawfirm: standard big lawfirm retainer / representation agreement signed. Bills owed. No effort to collect in last two years. Is the retainer/rep agreement (assume standard) a contract -- 4 years?

A: Yes, that would be a contract, and the statute of limitations would be 4 years.


 

2. Owing to a vendor wherein there is no contract. Just invoices that were likely paid for a while and then payments stopped. No collection activity.

a. what's the statue if effort to collect was a couple phone calls with last call 2 years ago.

A: If there was no contract, then how would you owe them money? More than likely, there is a contract. For example, if the vendor provided you with a service or product, then there are only two possibilities: (1) the service or product was a gift, or (2) there was an expectation of payment. If (1), then you owe nothing. If (2), then there was a contract and the failure to pay is a breach of contract. The statute of limitations would be 4 years. The attempts to collect are irrelevant.


b. what's the statute if law firm retained?

A: The statute of limitations for a breach of contract is 4 years regardless of whether a law firm was retained.


 

3. What does toll a statute? Is it only active litigation?

A: The statute of limitations could be tolled for a variety of reasons. Leaving the state tolls it, filing for bankruptcy tolls it (until discharge). There are a lot of reasons (too many to name). If you're the defendant, you don't want it tolled, obviously.
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