Legal Question in Credit and Debt Law in California

Re: persoanl loan unpaid

You should send a demand letter for the balance or hire an attorney to send the letter. If payment is not received in ten days, I would recommend filing a lawsuit. Please contact me if you have any other questions.

Re: persoanl loan unpaid

Unless you are willing to settle for a judgment of $7,500 (the statutory limit in small claims court), you are going to have to sue him in Superior Court, which generally is going to require an attorney. You can also turn the matter over to a collection agent, or an attorney to attempt to collect, however, they generally charge a percentage of what they collect, and it is not an insubstantial amount. You need to first determine how the loan was documented. If you simply gave him the money with a hand-shake agreement, then you had better go straight to filing a lawsuit. Oral agreements have a very short statute of limitations, and failure to file suit in time could completely wipe out your legal claim against him. If it is documented, you have a bit more time, and collections might be the place to start first. Good luck.

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