Legal Question in Credit and Debt Law in New York

can i be sued by personal party even though i've been making payments

I was given a 25,000 personal loan for my business by a family friend in 2002. since that time period things have gone sour in our relationship. this problem started at the end of 2003. i was told to pay back the debt in full, this was not possible. my lawyer at the time advised to start making payments each month in the amount that we could afford. a letter was sent by my lawyer to the other party. they refused the terms offered. my lawyer advised to still send payment each month, which i have been doing each month. they have never cashed the checks and have even sent a few back. my lawyer said that as long as i was making an effort to pay, they had no legal recourse....is this true? i have now received a letter stating that i am being sued by this party for full payment, interest and all fees....thanks


Asked on 9/04/04, 2:32 pm

1 Answer from Attorneys
Guy Lewit Guy Mitchell Lewit, Esq.

Re: can i be sued by personal party even though i've been making payments

get a new lawyer. You don't say how the funds were lent...was there anything in writing? What was the interest rate? When was repayment to commence? You don't have the right to dictate the terms of repayment...either it was in the agreement or it was not...and if the terms were not in any agreement, the FULL AMOUNT IS DUE ON DEMAND. Not that they can get it...You have to provide more information.

Read more
Answered on 9/06/04, 5:29 pm


Related Questions & Answers

More Credit, Debt and Collections Law questions and answers in New York