Verbal agreement - loan

[eastern_eagle]

I loaned someone small amounts of money (when I say small, I mean $200, $300 at a time) over a period of 6 months or so that totalled well over the max $5,000 for small claims, but I can't afford to hire an attorney, so I'll settle for the $5,000 now, if I can win. The problem is it was all verbal and instant message contracts and all in cash. I did save several of the instant messages with her declaring how much she needed. Also, she claims to have found a job, but I assumed once she had it, she would start reimbursing me. So now I'm not even sure if she has a job or if she was lying to me in order for me to give her more money with the promise that she would pay me with her next paycheck. Would I be able to win in court and if so, how could I collect if in fact she is jobless? Any advice would be appreciated.

P.S. Can I also sue her later to get the amount that was over $5,000, since the loan was not all at once?

 

[Michael Wechsler]

I loaned someone small amounts of money (when I say small, I mean $200, $300 at a time) over a period of 6 months or so that totalled well over the max $5,000 for small claims, but I can't afford to hire an attorney, so I'll settle for the $5,000 now, if I can win. The problem is it was all verbal and instant message contracts and all in cash. I did save several of the instant messages with her declaring how much she needed. Also, she claims to have found a job, but I assumed once she had it, she would start reimbursing me. So now I'm not even sure if she has a job or if she was lying to me in order for me to give her more money with the promise that she would pay me with her next paycheck. Would I be able to win in court and if so, how could I collect if in fact she is jobless? Any advice would be appreciated.

P.S. Can I also sue her later to get the amount that was over $5,000, since the loan was not all at once?

(1) You can sue for each transaction as a separate claim or consolidate them as you wish, e.g. 2004 as one case for $4,500 and 2005 as $3,400 and have two index numbers that might be heard on the same night.

(2) The verbal contracts should all be enforceable contracts. The problem is that you will need to prove that you gave the money to this person. In going to court, you had better know exactly how much money we are talking about and when. Some flimsy response to a judge's question to specify the details of the loan as "around $4,500 last year" won't do you much good. If you can't come to court and say exactly how much it was, why should a judge arbitrarily award you money?

(3) Were you in a romantic relationship? If so, you might find it even more challenging to deal with a lawsuit. This is because she may claim that any "loans" you may have made were gifts. Certainly in the context of a relationship and without any details, it might look like you wouldn't have bothered with payback of these "loans" if you weren't still dating.

I'd bring anything and everything I had into court as evidence as this case will likely come down to credibility. Witnesses would be important to have as well. You are correct in having a challenge with collection since you can't squeeze blood from a stone although having a judgment isn't necessarily a complete waste of time. I'd sooner worry about winning your case than the execution of a judgment. Take it one step at a time and organize yourself. Good luck with your cases.

 

[Duranie]

I agree, file a small claims suit for the amount of $5000 and that is all you might be able to claim.



You'll have to prove these were loans and not gifts. Lessson learned here-never loan anyone money without them sigining anything that they will pay it back. At least give them a check and write "loan" in the memo field and when they cash it, that is proof it was a loan and not a gift.