Legal Question in Civil Litigation in Pennsylvania

Hi :) My question is that this past November, a friend of mine loaned me $3600 dollars...he put on the bottom of the check that it was a loan to me...I didn't sign a contract, and he said that i could take my time paying him back, and that I can just give him what I can whenever I can...well so far I paid him $700 back, but I have really been struggling, and so far he has appeared to be understanding...well in 2 weeks I am going to join my husband in egypt and I will be there indefinately, and this friend just emailed me that we "have to talk"...I'm worried now that he will try to sue me for this money, even though I made it clear to him that I am going to keep sending him payments while I'm there...so does he have a chance of suing me?? Thanks for your time.


Asked on 7/29/10, 12:30 pm

1 Answer from Attorneys

Yes. And by writing "loan" in the payment line, he has helped establish that this was a loan and not a gift. The problem is that there is no loan document. He can sue, but it will be your word versus his. It is doubtful that he can sue in the next 2 weeks, but you want to keep him happy enough so that he does not. Do not tell him you are leaving the country!

What I would do is meet with him. How much can you reasonably afford to pay him per month? You should have a real promissory note drawn up to protect both of you. Promise that you will regularly pay every month. Put some interest in the note (say 6% - the legal rate in PA) as an inducement to allow this. I don't know if he will accept $100 a month. At that rate, it will take you 2 1/2 years to repay the debt or more if interest is added. But as long as your regularly pay, this should not be a problem. Try to pay more if you can. Keep a tab of your payments, the principal and interest.

If he wants it all now, there is not much you can do. Pay what you can just to stall him. If you leave the country, will you have any assets left in PA? Make sure that you own no land, no personal property and have no bank accounts. That way, he can sue but he would first have to get service on you. If you have left the country, he has to go through a cumbersome procedure to get service on you in Egypt. I do not know Egyptian law or if they are a signatory to the Hague Convention on Service or if he would have to use a procedure called "letters rogatory" through the US State department. He will need to get a lawyer to do that and its going to be more trouble than its worth. I don't know where you are living, but make sure that the owner of the dwelling does not accept service for you. Their answer should be "she left and I don't know where she is at."

Meanwhile save up the funds. You have a moral obligation to pay him and when you get all the money together, you can pay him the money plus a little something for interest (again, use the legal rate - I think that is fair).

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Answered on 8/03/10, 1:41 pm


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