Q: Is there a statute of limitations for promissory notes and personal guarantees for California residents?

A: Generally, Promissory Note with Personal Guarantee in writing has s Statute of limitations OF 4 YEARS FROM DATE OF Breach/Default of the Note. Usually, the Breach is the date when the note was defaulted, the date when a payment was not made or some term in the note was not performed.

Very important to read the Note and its terms very carefully.

A: Yes. But the time limit is not measured from the date of the note, but from the date of when it was due. Also effecting the time limit to sue are payments made or other actions done.

A: In California, the statute of limitations for promissory notes and personal guarantees depends on whether the note is written or oral.

1. Written promissory notes and guarantees:

The statute of limitations for written contracts, including promissory notes and personal guarantees, is four years (California Code of Civil Procedure section 337(a)). This means that the lender has four years from the date of default or the last payment made on the note to initiate a lawsuit against the borrower or guarantor to collect the debt.

2. Oral promissory notes and guarantees:

For oral contracts, the statute of limitations is two years (California Code of Civil Procedure section 339(1)).

In your case, since the promissory note with a personal guarantee was signed in 2008 and is presumably a written contract, the four-year statute of limitations would apply. This means that if the default or last payment occurred more than four years ago, the lender may be barred from initiating a lawsuit to collect the debt.

However, it's essential to note that certain actions can "toll" (pause) or reset the statute of limitations, such as:

- The borrower acknowledging the debt in writing

- The borrower making a partial payment on the debt

- The lender initiating a lawsuit within the statute of limitations period

If any of these actions have occurred, the statute of limitations may be extended or restarted. It's advisable to consult with a California-licensed attorney specializing in contract law or debt collection to assess your specific situation and determine the best course of action.