Legal Question in Credit and Debt Law in California

Personal Loan to Friend

I lent money to friend who indicated payback (double of original amount). As of 1/20/08, the total is $142,159.

Have email and copies of signed receipts for debt. Debtor fails to communicate. Two demand letters sent to known addresses were returned.

Personal information I have is bank account, car license number, phone numbers and email.

How can I proceed to collect my money?


Asked on 10/29/08, 4:55 pm

2 Answers from Attorneys
Larry Rothman Larry Rothman & Associates

Re: Personal Loan to Friend

You can still bring an action, even if the agreement is oral. We would have to review your documentation. If this was a personal loan the legal interest is 10 per cent. Please call us if you have any other questions.

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Answered on 11/05/08, 4:00 pm
Robert Mccoy Law Office Of Robert McCoy

Re: Personal Loan to Friend

First of all, you cannot legally collect 2 times the amount of the loan. Such practice is called usury, which is another name for loan sharking. But you can collect the amount you loaned plus a reasonable rate of legal interest. You will probably need to file and serve a lawsuit against your friend. After you get a judgment, you can attach his wages, bank accounts, spouse's bank accounts, or put a lien on his property.

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Answered on 10/29/08, 9:30 pm


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