In BC Canada, October 2003 we had a small claims settlement conference and the other party signed a promissory note to pay us $4,000. He has not paid us anything. It is now just over 6 years. Is there a statute of limitations in small claims BC Canada or do we have any recourse at all in trying to collect.

If I understand you, rather than go to judgement, you accepted a note from the defendant for $4k. Umm why would you do that? Are there any terms in the note or settlement agreement if he doesn't pay on the note?

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Originally Posted by ScottGem

If I understand you, rather than go to judgement, you accepted a note from the defendent for $4k. Umm why would you do that? Are there any terms in the note or settlement agreement if he doesn't pay on the note?

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It wouldn't have mattered if we'd gone to court and got a judgement or if he signed the note. He didn't have the money at the time to pay one way or the other. But now we know that he has a job and has the resources to pay it back. Question being have we gone past the satute of limitations.

Again, what did the agreement say? Without knowing what the agreement says, the note is a contract. I believe the limit in Canada is 6 years on a contract. So you may be past the SOL to take him to court again.

Yes, it does matter whether you got a judgment or accepted a note. Had you gotten a judgment, you would have 14 years to collect it. If you know he's working you could use the judgment to garnish his wages. Now you have to sue him again if the SOL hasn't expired.

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Originally Posted by ScottGem

Again, what did the agreement say? without knowing what the agreement says, the note is a contract. I believe the limit in Canada is 6 years on a contract. So you may be past the SOL to take him to court again.

Yes, it does matter whether you got a judgment or accepted a note. Had you gotten a judgment, you would have 14 years to collect it. If you know he's working you could use the judgment to garnish his wages. Now you have to sue him again if the SOL hasn't expired.

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The original promissory note was dated March 26/98 promissing to pay in full by March 26/03 at which time he signed a replacement note (since he still didn't have the money to pay) dated Oct 2/03 promissing to pay by March 26/05. So it's been 12 yrs since the original note and just over 6 on the second. You are very likely right in that the SOL has expired on this. Thanks for your input. I've been trying to get through to small claims and only get voicemail.

Yep, you made a mistake here in alloowing the note and even worse in allowing it to be renewed. When he asked for a renewal, I would have offered it ONLY on the condition that he pays something. I think he is stringing you along until the SOL expired.

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Originally Posted by ScottGem

Yep, you made a mistake here in alloowing the note and even worse in allowing it to be renewed. when he asked for a renewal, I would have offered it ONLY on the condition that he pays something. I think he is stringing you along until the SOL expired.

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I agree. Live and learn eh!