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  1. #1
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    Jul 2013
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    Default How Long Does a Creditor Have to Sue for a Personal Loan

    My question involves small claims court in the state of: Texas
    In 2002, a friend loaned me $7,000 as a down payment on a house. We figured the repayment schedule with interest. I ended up moving away and she also managed the property for an additional sum. I paid back everything with interest. Now she is coming and saying I still owe her $5,000. I got rid of my records last year. Can she sue me?

  2. #2
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    Sep 2005
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    Default Re: How Long Does a Creditor Have to Sue for a Personal Loan

    That will depend on (a) what she claims the $5,000 represents (the loan versus "manag[ing] the property for an additional sum"), and (b) how long ago you allegedly defaulted.

  3. #3
    Join Date
    Jul 2013
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    2

    Default Re: How Long Does a Creditor Have to Sue for a Personal Loan

    The loan would have been paid off around 2003, including fees for managing the property. I kept meticulous records but I thought is was safe to let them go. She's claiming she just found some notes she kept that indicate I still owe $5,000 and that she just now noticed. Like she wouldn't have known 10 years ago if I hadn't paid her back the agreed on amount.

  4. #4
    Join Date
    Apr 2009
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    Inland Empire
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    1,410

    Default Re: How Long Does a Creditor Have to Sue for a Personal Loan

    Quote Quoting clee
    View Post
    My question involves small claims court in the state of: Texas
    In 2002, a friend loaned me $7,000 as a down payment on a house. We figured the repayment schedule with interest. I ended up moving away and she also managed the property for an additional sum. I paid back everything with interest. Now she is coming and saying I still owe her $5,000. I got rid of my records last year. Can she sue me?
    Ask her what proof she has that you owe her anything.

  5. #5
    Join Date
    Mar 2013
    Posts
    18,340

    Default Re: How Long Does a Creditor Have to Sue for a Personal Loan

    In Texas she has 4 years to sue from the date of the alleged default, whether the agreement was oral or in writing.

    You certainly have the option of telling here where to stick it.

    If she sues you, she will have to prove the debt.

    And if her proof is better than yours (which appears to be none) you will have learned a healthy lesson about keeping records in the future.

    With scanners and hard drives there's no reason records can't be kept indefinitely.

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