My question involves small claims court in the state of:California.
I made a $5,500.00 personal loan to a friend. We both signed a one year payment agreement.
Friend defaulted on loan as he could not pay. So, second loan extention was made for a 6 month term. Still no payment and states unable to pay again.
When asked to sign another loan agreement for extention he felt it wasn't necessary. Stated he would pay me back.
I expressed concern about his defaulting on the loan and told him I thought the statute of limitations for small claims court in California was 4 years for a personal loan.
He stated ours was not a personal loan because it was between friends. He says he knows all about contracts and statue of limitations because he is a contractor and home inspector.
Am I wrong?
If not, when does the statute of limitations begin? The beginning of the original loan, or the loan extention? Or would the time begin at the tme the loan(s) were to be paid in full by the friend?
Please clear up my confusion. Thanks.