Legal Question in Business Law in Washington

breach contract

this is a case of lending money to a

friend in a form of business loan

agreement contract for 3 years with

interest payment for the course of 3

years with full money restitution at

the end of 3 years. Business

dissolution with liquidation of assets

back in July 08. Default payment

since July 08. Inumerous attempted

made in reaching and requesting to

honor the contract Difficulty in

reaching the person(twice)no

promise near future of any form of

payment. what remedies are in this

situation?


Asked on 2/12/09, 11:14 am

1 Answer from Attorneys
Amir John Showrai The Pacific Law Firm, PLLC

Re: breach contract

When you say "liquidation" do you mean bankruptcy or just going out of business? If you mean bankruptcy, then you should have been named as a creditor in the bankruptcy proceedings and whatever portion of the debtor's assets you were going to get would come from those proceedings.

On the other hand, if the business just went under, and your loan was to your friend, personally, then your only option is to sue for breach of contract asking to be paid the outstanding balance and interest due. Getting the judgment will be the easy part. Collecting is usually the hard part if your former friend has no money or assets to seize to satisfy the debt.

I am happy to consult on this with you, but I caution you, do not pursue someone who went out of business if they have no assets from which to recoup your losses. Otherwise, you will spend thousands on an attorney and will be left holding an empty bag to boot.

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Answered on 2/13/09, 8:33 am


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