Legal Question in Credit and Debt Law in Michigan
Loan - Verbal Agreement
In 1998, I loaned a roommate $7,000 - the agreement was the friend would payback the money once he was able to (He had just finished graduate school and was looking for a job). We had agreed to smaller monthly payments until the debt was paid off. After a couple of years, only a couple payments were made. I have tried talking with this person and have gottne many excuses. What, if possible, is the best way of getting the loan paid back in full? I have copies of the original checks made to the individual that I loaned money to and I have copies of the checks that were made to me for the partial loan repayment. The outstanding loan sum is about $6,000.00 now. Thank you.
2 Answers from Attorneys
Re: Loan - Verbal Agreement
You can sue him and also ask for attorney fees. This will allow you to garnish his bank account. Or, if he's having trouble with his budgeting but has direct deposit, he may be able to designate a certain amount to be deposited into an account you set up every pay period. Or, you can ask him to take out a loan and give you the balance, rather than having you sue him and garnish any bank account he might have, as well as his pay. if you give him options, you might find he will find a way to return the money. if he's not working, then you're probably out of luck. Use the returned checks and payment history to prove your case, you shouldn't need a lawyer to take that one to court since you have a history of repayment and evidence of the loan.
Re: Loan - Verbal Agreement
If the debtor is not willing to work out payment arrangements with you or is not able to pay off the balance to your satisfaction, you may have no choice but to take him to court if you want to see any money. Be advised that the small claims court (where neither party can have an attorney) is always an option, but you are limited to $3000 in damages (1/2 of your claimed value). If you have any questions, please contact me at www.lawgreg.com
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