Legal Question in Credit and Debt Law in Tennessee

If your friend will not repay the loan the only options you have are to sue him in the General Sessions Court for the county where he resides or where the loan was made or �write-off� the loan; i.e., forgetting about the loan and trying to recover the funds.

The problem you may have however, is that in the absence of some sort of writing signed by your friend where he admits to the loan in some fashion, is proving the loan was made or that it was a loan and not a gift. If he should deny the loan in court, it would be your word against his and since you would have the burden of proof in a court, you would lose the lawsuit. Of a somewhat related nature, if he should admit that you �gave� him $400.00, he could easily claim that it was a gift and not a loan to be repaid. Once again, in the absence of a writing it would be your word against his and you would lose.