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  1. #1

    Default Statute of Limitations for a Promissory Note

    My question involves collection proceedings in the State of: Indiana

    Approximately 10 years ago my stepson borrowed $22,000 from his father and I. He signed a Promissory Note. For about 2 years we were collecting payment from him thru a Voluntary Wage Assignment. THen he was fired from his job. He bounced around from job to job, working for himself and odd jobs. Never staying in one place long enough to start another VWA. We kept asking him to pay us something but he always had excuses.

    He recently won a settlement from an injury he received at his last place of employment. We do not know how much but understand it was fairly large. We no longer have any relationship with him (long story but basically when we cut off the funds he kept wanting to borrow or the items he would "borrow" but never return) he decided he no longer calls or retunrs our calls.

    His father and I are now on Social Security and the money he borrowed from us would help us survive in retirement. I would like to take him to court to collect on this debt but his father thinks that it is too late due to the statue of limitations. Any thoughts?

    We are also thinking that if it is too late to collect, we would deduct this amount from any inheritance he would be entitled to in Indiana. Our Wills do not leave anthing to him but we have been told that this is not legal in Indiana. We must either leave him something, or state why we are not. Any thoughts?

    Thanks.

  2. #2
    Join Date
    Oct 2016
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    Default Re: Statute of Limitations

    IC 34-11-2-9
    Promissory notes, bills of exchange, or written contracts for payment of money

    Sec. 9. An action upon promissory notes, bills of exchange, or other written contracts for the payment of money executed after August 31, 1982, must be commenced within six (6) years after the cause of action accrues. An action upon promissory notes, bills of exchange, and other written contracts for the payment of money executed on or after September 19, 1881, and before September 1, 1982, must be commenced within ten (10) years after the cause of action accrues. However, all contracts described in this section that have been executed before September 19, 1881, may be enforced within the time only as they have to run, before being barred under the law in effect at the time of their executions limiting the commencement of actions, and not afterward.
    In your case it sounds as the "cause of action" would have been approximately 8 years ago when he stopped paying.

    The most you can sue for in small claims court in Indiana is $6,000 ($8,000 in Marion County.)

    https://www.in.gov/judiciary/3966.htm

  3. #3

    Default Re: Statute of Limitations

    So is there a statue of limitations and could I not sue in another court besides small claims?

  4. #4
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    Default Re: Statute of Limitations

    Yes, the statute of limitations is 10 years from the cause of action. As I stated in the last post along with the law. You cause of action was about 8 years ago.

    You can sue in a higher state court but you will need a lawyer.

  5. #5
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    Default Re: Statute of Limitations

    Quote Quoting labsmom5
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    THen he was fired from his job. He bounced around from job to job, working for himself and odd jobs. Never staying in one place long enough to start another VWA. We kept asking him to pay us something but he always had excuses. the funds he kept wanting to borrow or the items he would "borrow" but never return
    Those are the symptoms of a drug addict.

    Quote Quoting labsmom5
    View Post
    So is there a statue of limitations and could I not sue in another court besides small claims?
    6 years.

    It was 10 years before 1982. That's what the bolded section said.

    You can still sue him. He would have to raise the statute of limitations as an affirmative defense. If he doesn't or he doesn't respond to the lawsuit and you get a default judgment you'll have at least that.

    But do it in small claims for the limit. If you go for the full amount you'll have to sue in a higher court. You'll need a lawyer who will cost you thousands and that doesn't make any sense because your chances of collecting from a deadbeat are pretty slim.

    Quote Quoting labsmom5
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    We must either leave him something, or state why we are not.
    No big deal. Just update your wills to specifically disinherit him and say why.

  6. #6
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    Default Re: Statute of Limitations

    I missed the dates and looked only at the type of contract.

    Yep. 6 years.

  7. #7
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    Default Re: Statute of Limitations

    Quote Quoting adjusterjack
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    No big deal. Just update your wills to specifically disinherit him and say why.
    I suggest NOT saying why. That just invites more trouble. I would simply acknowledge they exist and note that I choose to leave them nothing. That's all you need to do.

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