Legal Question in Civil Litigation in Georgia
I recently loaned someone money. They were paying faithfully every week until they got balance down to $226.00. I asked them to pay off the balance in full since I'm moving to a different state, they claim they are only legally required to pay me back weekly as they've been doing. The promissory note they signed does not give any specifics to how much must be paid back weekly (they've been paying $25 a week) it only says that the money was a loan and that they will pay it back. If I take them to small claims court for the balance, is the law on their side as they have suggested?
2 Answers from Attorneys
Why would you even bother? If the borrower is paying as agreed, then there really is no case. Why go to that expense and trouble? They have 30 days to answer the complaint before a hearing is held. And you would have to appear at the hearing or risk dismissal.
Even if you recover a judgment, you would then have to collect on it. Doing that is not going to get you paid any faster and may backfire as it will really tick off the borrower and they may stop paying all together which will force you to seek other remedies to collect, like wage garnishment. But I don't know if the person works for someone else or how much they earn. If they are self-employed, then there is no garnishment.
As a result, there may be scenarios where it would be more of a cost to file suit and try to collect than to just keep doing what you are doing. I am not sure why you moving has to change things. Why can't the person keep paying you by mailing you the check or using western union or something like PayPal?
And the promissory note, while it may have been a demand note, may have been modified by the course of conduct in you allowing the person to pay weekly. A lawyer would have to see the entire note to see what it says, if anything, about that. If the person pays $25 each week, they will have the debt paid off by Christmas.
Rachel Hunter gave you an excellent answer. Let me just add that it is always a mistake to loan money that you cannot afford to lose, and if you, at least draw up a proper note. A note with no repayment terms is NOT a proper note.
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