Dear purplepans-ga;
Thank you for bringing your question to us.
Unfortunately it appears that you have waited too long to take action.
In the state of Wisconsin there is a ?statute of limitations? that
closes the window on debt collection after a period of set time.
Contractual debt (where one signs a contract to pay on time or in an
establish period of time) the statute of limitations is six years.
With regard to a promissory note the statute of limitations is ten
years. Forgive me if I point out that you erred when you secured
neither of these binding agreements at the time you generously helped
your friend.
What you had (or thought you had) with your friend was essentially an
oral contract. In Wisconsin the statute of limitations on recovering a
debt as a result of an oral contract (aka express or implied
contract) is six years (or six years from the date of last payment on
the debt if he made some payments, then defaulted). This limitation is
specifically mentioned in WISCONSIN STATUTES 893.43
?893.43 Action on contract. An action upon any contract, obligation
or liability, express or implied, including an action to recover fees
for professional services, except those mentioned in s. 893.40, shall
be commenced within 6 years after the cause of action accrues or be
barred.?
WISCONSIN STATUTES
CHAPTER 893
LIMITATIONS OF COMMENCEMENT OF ACTIONS AND PROCEEDINGS
http://folio.legis.state.wi.us/cgi-bin/om_isapi.dll?clientID=61752433&infobase=stats.nfo&j1=893.40&record={2FCA8}&softpage=Document
Or, if you prefer, a convenient .pdf document
http://www.legis.state.wi.us/statutes/Stat0893.pdf
You will note that once the statute of limitations has passed on an
expressed or implied agreement, there is no hope for legal recourse:
?893.05 Relation of statute of limitations to right and remedy.
When the period within which an action may be commenced on a Wisconsin
cause of action has expired, the right is extinguished as well as the
remedy.?
Even then you have to PROVE that you had an oral contract (which is
essentially impossible to do unless you have it on tape, have a letter
confirming the oral agreement, or have credible witnesses who will
testify to having witnessed the agreement). As a general rule written
contracts always carry more weight than verbal agreements because they
are easier to prove.
Regardless, since your uncollected loan repayment is seven years old,
the statute of limitations has now passed and you can no longer make
any legal claim against your ?friend? for the unpaid debt. Having said
that, your ?friend? now holds all the cards so it would behoove you to
gently appeal to his moral or ethical character (assuming he has one)
to satisfy the debt. Perhaps you could take the debt in trade for
goods or services equivalent (or as close as feasible) to what is
owed. Short of him having a financial windfall and paying you the
money, this appears to be your best (if not only) alternative.
On the other hand, if your friend paid you, say, a few bucks toward
the loan only a couple of years ago and you can calculate his last
payment to you at a point less than six years ago, you may very well
still have legal recourse. Since we do not provide legal advice in
this forum I suggest you consult an attorney for more information
regarding a potential civil lawsuit.
I hope you find that my research exceeds your expectations. If you
have any questions about my research please post a clarification
request prior to rating the answer. Otherwise, I welcome your rating
and your final comments and I look forward to working with you again
in the near future. Thank you for bringing your question to us.
Best regards;
Tutuzdad ? Google Answers Researcher
OTHER INFORMATION SOURCES
BSC ALLIANCE
?State Statutes of Limitation on Debt Collection?
http://www.bcsalliance.com/y_debt_sol.html
CREDIT INFOCENTER
?Statute of Limitations on Debts?
http://www.creditinfocenter.com/rebuild/statuteLimitations.shtml
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