personal loan to a so called friend

[dporto]

On 2/1/03 I lent a friend $10,000. She needed it for a down payment of a time share. Several months later I find out that she didn't use it for that and needed the money to move out of her apartment. I contacted her asking for the money back, that I didn't lend her it for that purpose. She refused to return it and stated it didn't matter what I gave it to her for. After some struggle we came to an agreement that she would make monthly payments starting the begining of the year 2004. She did and has been regularly until December 2004. She didn't make a payment yet this month either. I want to give her until the end of the week before contacting her, by mail.
I have copies of the withdrawal slip from bank, a thank you card sent by her thanking me for my generosity, copies of all the money orders sent in payment and evelopes mailed in and a card where she states that she will return to me what is mine, without a doubt.

Can I do anything legally to get my money back if she continues not to pay???

 

[Michael Wechsler]

A verbal agreement is just as an enforceable agreement as a written one. Most people are under the misconception that if a deal isn't reduced to paper then it is unenforceable and they can simply walk away. Common sense says that if two parties agreed to a contract, a writing doesn't change the facts. It doesn't -- it just helps you prove later what the parties had agreed. Since you have an oral agreement, if you went to court to sue for nonpayment, you would need to prove that an agreement existed and its terms. You can do this by using supporting evidence, such as the thank you card, payments made and more. Credibility will be a factor and having a writing reduces the issue of credibility since having the terms written down leaves fewer facts open to question.

Small claims courts typically cap off around $5,000. So if there is still 8,000 left then you will be out of luck for the remaining 3,000. You may have to sue in a civil court, which would involve paying a filing fee, drafting a complaint, etc. What you may want to do is prepare yourself for court by doing what you would likely do anyways and you suggested -- sending a certified return receipt letter setting for the terms of the loan, stating that there has been a default and demanding payment within a certain number of days or you will be left with no other choice but to take legal action.

On 2/1/03 I lent a friend $10,000. She needed it for a down payment of a time share. Several months later I find out that she didn't use it for that and needed the money to move out of her apartment. I contacted her asking for the money back, that I didn't lend her it for that purpose. She refused to return it and stated it didn't matter what I gave it to her for. After some struggle we came to an agreement that she would make monthly payments starting the begining of the year 2004. She did and has been regularly until December 2004. She didn't make a payment yet this month either. I want to give her until the end of the week before contacting her, by mail.
I have copies of the withdrawal slip from bank, a thank you card sent by her thanking me for my generosity, copies of all the money orders sent in payment and evelopes mailed in and a card where she states that she will return to me what is mine, without a doubt.

Can I do anything legally to get my money back if she continues not to pay???