Legal Question in Credit and Debt Law in California

Re: Loaned Money to Friend; does not want to pay back

I would take this case with a small retainer and the balance of fees on a contingency. Contact me directly.

Re: Loaned Money to Friend; does not want to pay back

I hope it was not cash that you gave the co-worker/former friend. Without direct written evidence of the loan, you will likely be held to a two year statute of limitations (for oral contracts). In that case, you are beyond the period of enforcement.

If you have written evidence of the loan (such as an email acknowledging the loan, a cancelled check, money order, etc.), then you will argue that the four year statute (for written contracts) governs here.

If that is the case, then you have four years from the date of breach of the contract, in which to file suit to enforce the contract. In other words, you will need to act soon.

File suit in Superior Court. You will likely need an attorney to aid you. If you need help, let us know. We conduct statewide litigation of collection claims, mostly on a contingency basis.

Re: Loaned Money to Friend; does not want to pay back

Even without a written contract, you have two options. First, you may be able to sue on an oral contract basis; and/or you can sue for something called "money had and received," which allows you to recover monies provided in situations such as yours.

I specialize in collection matters of this type; please feel free to contact me if you would like to discuss this further.

Re: Loaned Money to Friend; does not want to pay back

Your "friend" would have a really hard time explaining how he managed to talk you into giving him a $40,000 "gift". My suggestion would be to consult a local attorney right away to discuss taking appropriate legal action against your "friend" to collect the money owed.

If a demand letter from an attorney doesn't snap your friend back to reality, then a lawsuit might. Your case might be more difficult to prove because of the verbal agreement, but no case is perfect.

Re: Loaned Money to Friend; does not want to pay back

You will probably have to file a lawsuit against your friend. Sometimes, the lawsuit just being filed may cause your friend to work out payments.

Re: Loaned Money to Friend; does not want to pay back

Was it February of this year that you loaned the money to your friend? One of the attorneys who responded thought it was a while ago. If so, the clock has barely started to run.

Feel free to contact me directly. I can prepare a demand letter that might get things going and initiate legal action if necessary. Did you give your friend a check or cash?