Legal Question in Credit and Debt Law in Georgia

Jenn,

This is not civil rights. That concerns a violation of a civil right - could be based on age, handicap or gender discrimination, race or some other discriminatory action or practice.

A loan is evidenced by a promissory note (a written promise by the borrower to pay as per the other terms of the note). It is a species of contracts and if a business was implicated a business contract.

I don't know what you mean by "legal standing" or what you are asking. If the promissory note evidencing a loan is signed by the borrower, its legally enforceable. If the borrower is in defaul under the terms of the note, then the lender can sue. If the borrower pays as per the note and is not in default, why would the lender sue on the note?

Loans do not have to be collateralized to be valid. Collateral just gives the lender some extra rights in the debtors' property and makes the lender feel more secure - like for a car loan. The lender has a lien on the car and if you don't make the payments, the lender repo's the car.

Friends., if they want to maintain the friendship, don't loan people money. While you have some writing here, did either of you have this drafted by an attorney? It iwll not be more or less legal but if drafted by yourselves, it may mean that it is less than clear. That does not mean a court will not enforce it.

Since I have not seen the note or know of any circumstances regarding the repayment or the alleged threats (its not a threat to take legal action if you are permitted to do it) to sue. Loans may or may not state the purpose but at a minimum, they have to identify how much was borrowed, how the loan will be repaid (either on demand or in installments) and if there is any interest. Most loans require written notice of a default to be sent 10 or more days. If the default is not cured by the borrower, then the lender can sue.

If the lender does not like what you are doing with the money, that is not the lender's concern as long as the loan is repaid as per its terms.

I suggest that you sit down with a consumer law attorney and have him/her review the promissory note and the circumstances. If you have received a letter from the lender, then you need to respond.

I am admitted in Georgia but I do not go to court so it would probably be better for you to use local counsel if it looks like this is headed in that direction. If you are merely interested in having the documents review and discussing your case in confidence, my charges are as follows: (1) just email consults are free - but this excludes document review. (2) I charge $50 to review the document - and any attorney would need to do that in order to give you competent advice. (3) I charge $50 for a 30-minute phone consult. Please contact me at [email protected] if you are interested in discussing the specifics of your situation in conifdence so that I may better assist you.

Simple and short answer - if you owe someone money, and it is due, honor your obligation and pay it back. People who don't pay their debts often get threats of a lawsuit (the natural step for a creditor). You seem to think that if/when that happens, some kind of additional "rights' kick in for you, or you need something to make you feel better about not paying, and you need to find answer. The answer is still the same. You still owe the money. Pay it back (or agree to a payment schedule).