Legal Question in Credit and Debt Law in Georgia

I applied and received a loan for $10,000 from my bank and I loan the money to a friend who promise to pay it off( I do have a signed promissory note). He was paying the monthly installments for about half of the loan, then he stopped. My bank took all of the money I had in my account to pay on the loan which was about $1,200.00. I paid the remainder of the loan($3200.94) to keep my good credit rating and now I want to sue him for my money back. I made this loan and agreement to him in another state, but I've moved since then. Can I file to sue him in the state I'm currently living in, or do I have to file in where the transaction took place, and do I need an attorney?


Asked on 1/04/13, 3:36 pm

2 Answers from Attorneys
Rachel Hunter

You need to sue him where he lives. You can sue in GA only if GA can exercise personal jurisdiction over your friend. But even if you sue in GA, how are you going to collect? Unless your friend has assets in GA you will have to end up transferring the judgment to the other state. I would just sue your ex-friend in whatever state he lives in. I would also get an attorney in that state to sue your friend in regular court. Different states have different limits for small claims (in GA for example, the limits are $15,000 but for NC they are only $5,000). You can probably get a lawyer to represent you for a percentage of whatever they are able to collect. And most states have wage garnishment so it behooves you to get a judgment and then proceed to collect on it.

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Answered on 1/04/13, 3:53 pm
Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

You will need to sue him in whatever state he is in. Some lawyers might accept the case for a percentage of the recovery, and it would be helpful, especially with you not there, to have counsel.

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Answered on 1/04/13, 4:33 pm


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