QUESTION
Ex-Roommate defaulted on contract to repay $1100. Now what?
Asked on Jun 04th, 2014 on Civil Litigation - South Carolina
More details to this question:
I have a contract that we both signed stating she would pay me $100 per month until the loan was paid off. It also states that if she defaults I have the right to take her to small claims court and she will have to pay any court fees. She defaulted the first month and I gave her a pass, essentially. Now this month she is claiming to not have the money again. I know I can take her to small claims court but how do I address her paying back the original debt as well as the court fees? Also is it possible to garnish her wages or her monthly SSI?
1 ANSWER
Before you can garnish wages you have to get a judgment. Anybody can claim that somebody owes them money, but they have no legal power to enforce that claim until a Court agrees. That means that you must sue her for her breaches of the contract. Unfortunately, unless you included an acceleration clause in the agreement (a clause which provides that if she defaults on any payment, the remaining amount becomes immediately due and payable), you will either have to sue her separately every time she misses a payment, or wait until she has missed the rest before suing her for the entire balance. I wouldn't wait too long, as she may claim that you agreed to waive timely payment, and cite your failure to sue her as evidence of that agreement.
Answered on Jun 04th, 2014 at 5:52 PM