Q&A: Collecting loans from friends

Question:

I loaned some money to a friend and they won’t pay it back. What timelines should I be aware of, to make sure I don’t lose my chance to sue?

Answer:

If you lent money to a friend, you cannot wait forever to start a lawsuit. If you both agreed they would pay you back in a certain period, once they fail to do so, the clock begins ticking on when you can start a lawsuit.

The reason for this is that in most normal civil lawsuits in Saskatchewan, you have two years in which to commence a lawsuit with the court. After the two years are up, the law can no longer help you get your money back. 

However, always speak to a lawyer about your specific case. There may be exceptions. For instance, in order for the two-year clock to kick in, you have to know that the person has failed to pay you back. So, if for years you had legitimate grounds to believe you had been paid back, the clock may not start ticking until you actually realize you had a claim.

Anwers for general information only. Parties should consider seeking legal advice prior to taking action in specific situations.
Copyright 2019 by Robertson Stromberg LLP. All rights reserved.

Articles & Research Q&A: Collecting loans from friends