Lent money is not returned

[Marcishaun]

Jurisdiction

Michigan

Hello,

I'm not sure if this case belongs here, but it's an old classic tale of lending money to someone and they completely ghost you. I have lent 5k to a acquaintance and they promised to me pay me as soon as possible and I gave them atleast 6 months before even asking for the repay. The first repayment was made for 600$ and then I ran into financial issues and needed urgent cash, so I reached out to the person, they completely blocked by number and I couldn't reach them by any means. I was able to find the address using phone book, however I'm not sure what are the next steps to get my money.

Money was transferred using Zelle and I still see that they are registered with Zelle and when I requested money, they are blatantly declining my request.

I live in east coast and the person I lent money to lives in Midwest. Is there any legal possibilities of obtaining the money they owe me.

Thanks,
SM

 

[army judge]

I live in east coast and the person I lent money to lives in Midwest. Is there any legal possibilities of obtaining the money they owe me.

The only legal mechanism available to you is filing a small claims court lawsuit.

However, that isn't easy to do, when the parties reside in different states.

Plus, even if you both live in the same state, that makes filing easier.

It does nothing to help you collect your judgment from the deadbeat.

It is often easier to consider the $5,000 as tuition towards your PhD in a very special club, WE DON'T LOAN MONEY TO ANYONE, SO DON'T ASK!!!

 

[adjusterjack]

Any time somebody asks you for a loan, do this. Take the cash in hand, go to the bathroom, hold the cash over the toilet and say "I don't need this money. I will never need this money. I can flush this money down this toilet and it won't bother me a bit."

When you can say that and mean it, then you can make the loan and be content knowing that you will never see the money again.

 

[zddoodah]

Is there any legal possibilities of obtaining the money they owe me.

In the abstract world of all that is hypothetical, anything is possible.

You'll have to sue where the borrower lives. I guess that's Michigan. You can do that in small claims court. You'll likely have to travel to Michigan at least once, and your travel costs aren't recoverable. If you get a judgment, you'll have to try and enforce it. The question is ultimately, how much time and effort are you willing to put into this?

 

[adjusterjack]

The question is ultimately, how much time and effort are you willing to put into this?

And money.

 

[Marcishaun]

Thanks for the response Army Judge, appreciate that. It's a 5000 lesson learnt, hope I don't forget that.

The only legal mechanism available to you is filing a small claims court lawsuit.

However, that isn't easy to do, when the parties reside in different states.

Plus, even if you both live in the same state, that makes filing easier.

It does nothing to help you collect your judgment from the deadbeat.

It is often easier to consider the $5,000 as tuition towards your PhD in a very special club, WE DON'T LOAN MONEY TO ANYONE, SO DON'T ASK!!!

 

[Marcishaun]

Traveling is not a problem for me. Could you explain what do you mean by 'try and enforce it' ? Also, how long does it normally take to get a judgment once I have filed my claims ? The transaction history is my account via Zelle and I do have text messages as back up, so wondering if that would be sufficient.

Please advise and thank you for your response.

In the abstract world of all that is hypothetical, anything is possible.

You'll have to sue where the borrower lives. I guess that's Michigan. You can do that in small claims court. You'll likely have to travel to Michigan at least once, and your travel costs aren't recoverable. If you get a judgment, you'll have to try and enforce it. The question is ultimately, how much time and effort are you willing to put into this?

 

[Marcishaun]

True, but when the concerned party got their family's situation involved (24/7 care taker for bed ridden mother and sick dad who couldn't take care of the wife), I wasn't thinking about all options, all I wanted to do was help.

Any time somebody asks you for a loan, do this. Take the cash in hand, go to the bathroom, hold the cash over the toilet and say "I don't need this money. I will never need this money. I can flush this money down this toilet and it won't bother me a bit."

When you can say that and mean it, then you can make the loan and be content knowing that you will never see the money again.

 

[adjusterjack]

how long does it normally take to get a judgment once I have filed my claims ?

You file your papers with the court, get them signed by the clerk or the judge. Depending on the court rules you either serve them on the Defendant by certified mail, return receipt or you hire a private process server. If by certified mail that could take 3-4 weeks. If the mail is undeliverable the PO will make several attempts before sending it back. If it's undeliverable you'll have to hire a private process server which could add another week or two unless you pay extra for expedited service.

Depending on the court rules, the Defendant may have to file a written answer within a certain amount of time, often 20 days. If no written answer is required and the return receipt comes in, the court will schedule a hearing/trial. Depending on how backlogged the schedule is that could be weeks or months.

If you win a judgment you cannot begin enforcement until the time for appeal has expired, 20 to 30 days.

Could you explain what do you mean by 'try and enforce it'

If you know where the Defendant works you file for wage garnishment. The employer and the employee are served the garnishment papers and the employee often has a certain amount of time to seek an exemption, 10 to 20 days.

Assuming the employee doesn't quit the job, the employer will send you a limited amount of money out of each of the employee's paycheck. Could take up to a year to get 5K.

If you know where the Defendant banks you can file to attach his bank account, if he wasn't smart enough to get his money out of banks by the time you get your judgment.

Might take you a year and a half to get your money. But a smart deadbeat will fix it so you never see a nickel. I know all about that, having sued deadbeat tenants and never seeing a nickel.

 

[adjusterjack]

True, but when the concerned party got their family's situation involved (24/7 care taker for bed ridden mother and sick dad who couldn't take care of the wife), I wasn't thinking about all options, all I wanted to do was help.

In that case, maybe you should consider it a gift, pat yourself on the back for your generosity and move on.

 

[Marcishaun]

Awesome, thanks a lot for such a detailed explanation and steps. I do know where the defendant banks and also owns a part of a business. I remember the name of the business from the text message. I don't have their account number as the transaction was through Zelle, but the defendant is still registered with Zelle as stated in my original post. I'll start this process and reach out here if there are any follow ups required.

Honestly thank you, this level of information means a lot.

You file your papers with the court, get them signed by the clerk or the judge. Depending on the court rules you either serve them on the Defendant by certified mail, return receipt or you hire a private process server. If by certified mail that could take 3-4 weeks. If the mail is undeliverable the PO will make several attempts before sending it back. If it's undeliverable you'll have to hire a private process server which could add another week or two unless you pay extra for expedited service.

Depending on the court rules, the Defendant may have to file a written answer within a certain amount of time, often 20 days. If no written answer is required and the return receipt comes in, the court will schedule a hearing/trial. Depending on how backlogged the schedule is that could be weeks or months.

If you win a judgment you cannot begin enforcement until the time for appeal has expired, 20 to 30 days.



If you know where the Defendant works you file for wage garnishment. The employer and the employee are served the garnishment papers and the employee often has a certain amount of time to seek an exemption, 10 to 20 days.

Assuming the employee doesn't quit the job, the employer will send you a limited amount of money out of each of the employee's paycheck. Could take up to a year to get 5K.

If you know where the Defendant banks you can file to attach his bank account, if he wasn't smart enough to get his money out of banks by the time you get your judgment.

Might take you a year and a half to get your money. But a smart deadbeat will fix it so you never see a nickel. I know all about that, having sued deadbeat tenants and never seeing a nickel.

 

[zddoodah]

Could you explain what do you mean by 'try and enforce it' ?

When you sue someone and win, you get a judgment. It's a ruling by the court that you're entitled to $X from the defendant. The judgment doesn't come with any money, and most defendants don't say, "oh, I lost, too bad, here's a check." You have to try and enforce the judgment. For ordinary civil money judgments, the most common ways of doing that are levying on bank accounts and garnishing wages. There are procedures you'll have to go through to do those things.

Also, how long does it normally take to get a judgment once I have filed my claims ?

I'm not in Michigan, so I have no idea. You could try calling the court clerk and asking about how long it takes, on average, from the time of filing to the trial date.

The transaction history is my account via Zelle and I do have text messages as back up, so wondering if that would be sufficient.

We can't intelligently speak to the sufficiency of evidence we've never seen (note that your testimony is also evidence).

 

[Marcishaun]

Thank you for adding more info to this. I'm trying to get hold of someone in Michigan to get me the basic info, so that I can get started and then plan my travel according. Appreciate all the response.

When you sue someone and win, you get a judgment. It's a ruling by the court that you're entitled to $X from the defendant. The judgment doesn't come with any money, and most defendants don't say, "oh, I lost, too bad, here's a check." You have to try and enforce the judgment. For ordinary civil money judgments, the most common ways of doing that are levying on bank accounts and garnishing wages. There are procedures you'll have to go through to do those things.



I'm not in Michigan, so I have no idea. You could try calling the court clerk and asking about how long it takes, on average, from the time of filing to the trial date.



We can't intelligently speak to the sufficiency of evidence we've never seen (note that your testimony is also evidence).