QUESTION
What recourse does the person who loaned the 30k out have?
Asked on Feb 20th, 2014 on Bankruptcy - Michigan
More details to this question:
I have a friend who loaned a person 30k by giving it to her in a cashier's check. It was a verbal agreement that it was a loan and when it will be paid. However, the person who received the money is now backing out on paying the amount loaned.
14 ANSWERS
Ronald A. Steinberg
Sue the person. Your friend is a naive fool.
Answered on Feb 26th, 2014 at 5:55 PM
Commercial Contracts Attorney serving Boise, ID
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Peters Law, PLLC
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The friend's legal recourse is to not do this again without getting a promissory note. He can sue, he might possibly win, but there is a good chance the jury will find it was a gift.
Answered on Feb 25th, 2014 at 4:59 PM
Michael J. Breczinski
The person can sue her.
Answered on Feb 25th, 2014 at 4:58 PM
Personal Injury Attorney serving Kent, WA
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Law Offices of Wayne J. Wimer, Inc. P.S.
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If the borrower refuses to pay, then your friend needs to file suit to collect that which is due and owing to him or her.
Answered on Feb 25th, 2014 at 4:52 PM
Contracts that are oral are as binding as ones that are written, it is just more difficult to prove the terms of the agreement. Your friend should send a demand letter and find out why the other person does not want to repay the money. She should then see an attorney to prepare a lawsuit for the full sum; she should also try to find out whether the person has a assets to pay any significant part of the loan. She may not need an attorney to handle most of the matter. Just the filing of suit, some advice, and what to do at trial.
Answered on Feb 25th, 2014 at 4:48 PM
Personal Injury Attorney serving Charlotte, NC
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Paul Whitfield and Associates P.A.
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This is what brings on lawsuits. Sue the rascal. Get you a lawyer. It ain't free. It may be on contingency if the lawyer thinks it can be collected. And that may be your biggest problem, collecting.
Answered on Feb 25th, 2014 at 4:47 PM
Employment Law Attorney serving Beverly Hills, CA
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Dordick Law Corporation
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An oral agreement is equally enforceable as a written agreement. The problem obviously is word against word. The cashiers check is good evidence of the existence of the loan. While it might be argued that the check is a written agreement, its probably an oral agreement and the lender has 2 years from the breach to file suit.
Answered on Feb 24th, 2014 at 8:43 PM
Have an attorney send a threatening letter. If that doesn't work, you file a lawsuit to collect.
Answered on Feb 21st, 2014 at 5:29 PM
Chapter 7 Bankruptcy Attorney serving Syracuse, NY
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Andrew T. Velonis, P.C.
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The lender can file a lawsuit, but there will be difficulty in proof, given that there was not a written agreement
Answered on Feb 21st, 2014 at 5:29 PM
James Edward Smith
Sue in civil court. Verbal agreements are honored as long as you have proof.
Answered on Feb 21st, 2014 at 5:29 PM
3 Awards
I hope the check had loan written on it. Otherwise, difficult to prove not a gift. It is possible to sue for the money, but does the person have money to recover?
Answered on Feb 21st, 2014 at 5:28 PM
Business Law Attorney serving Bingham Farms, MI
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James T. Weiner, P.C.
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He can sue to collect the debt even though it was a verbal agreement. However the judgment will only allow interest at the statutory judgment rate (which is negligible).
Answered on Feb 21st, 2014 at 5:28 PM
Loaning someone money in an untraceable form (cashiers' check rather than personal check) with an oral agreement is an excellent way to lose the money. It is a "he said, she said" situation and since your friend would be the plaintiff, they have the burden of proof.
Answered on Feb 21st, 2014 at 5:28 PM
Debt Collection Attorney serving Chicago, IL
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Edelman, Combs, Latturner & Goodwin, LLC
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If it is found by a trier of fact to be a loan and not a gift, it would be repayable on demand and enforceable.
Answered on Feb 21st, 2014 at 5:28 PM