I think you have a decent shot at recovering in small claims court. The statute of limitations is a defense, and can be waived if the defendant debtor does not raise the defense. You have the burden of proving the exact terms of the verbal agreement. Here it appears your theory is that the verbal agreement replaced the original written IOU.
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I agree with Mr. Chen. It would be worth a shot to file the small claims action. If they do not appear or do not raise the SOL defense, you may get a judgment based on the verbal agreement. You must do a demand letter first, so you can try that. Good luck.
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I agree with Attorney Chen. I recall this question was also asked and answered recently? You have the burden of proof and will need to set out your facts and any proof that the loan was made and that there was an IOU and that you didn't sue earlier as the defendant is a friend and continued to promise to pay when they had the money and they did not have the money until the house sold two months ago, so if they raise the Statute of Limitations, I would argue that the repayment of the debt is per the new agreement made three years ago not the old agreement 6 years ago and per the new agreement, the obligation did not commence until 2 months ago when the house was sold. Make sure your witness is there or you at least have a declaration under penalty of perjury from them.
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I believe the statute of limitations has been extended by the fact that you have renegotiated the damages and you have given the borrower consideration in that you have extended the due date for the loan period especially in light of the fact you have a witness. I would move forward quickly and file your action in small claims court.
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In my mind, I would like to know what the written IOU said as to when payment was to be made. It appears he was to pay 6k sometime in '99 or early 2000. Then there was the IOU. Im concerned that the IOU reqd payment sometime before 2009 when there was another verbal agreemnt made. I think that if the 4yr sol expired before he made the verbal promise in '09, you may lose. It doesnt appear there is consideration given by you in exchange for his later verbal agreemnt to pay. By that I mean, if you agreed to give him 50.00 and he agreed to pay the old expired loan, then you gave consideration. Consideration doesnt have to be money.