Personal loan not being repaid - should I sue?

In February 2007 I loaned $5K to a very good friend ( in Texas) through a balance transfer - that is, I took the debt upon my credit card with a very low interest rate to help him pay his bills. The money went straight to his bank account because he had a zero balance on his credit card.

We have numerous emails back and forth about repaying this loan - mainly that he was going to at least make the minimum payment each month (or more) until the balance was paid off.

He has missed 4 payments in a row. While I have no plans to sue at this time because he says he will get back on track (and he%26#039;s a good friend), I want to know what I will be dealing with in the case he defaults on the loan. I can afford to pay off the balance, but I choose not to at this point fearing I personally may be out the money. Is there any specific statute of limitations on the loan, or other measures I may want to take in case I need to sue some time down the road?

Thank you.

Personal loan not being repaid - should I sue?car loan

First of all, you might want to consider paying off the credit card. As long as it is not paid, interest accumulates. Despite the low interest rate, that is still money lost. The fact that you paid off the credit card in no way affects your legal right to be repaid.

Second, you may want to consider how suing him would affect your friendship. No matter how good your friendship is, suing each other is always a challenge to a healthy friendship. Of course you can sue for an unpaid load, where he did not follow the agreed upon payment plan. However, for $5,000? After filing fees and attorney fees, you will only actually realize a small percentage of that.

I would say make as many accommodations as possible to make sure he does eventually pays me back and avoid court. Sometimes frustration is the cost of loaning money to friends.

If you are still frustrated down the road, you may be able to represent yourself in small claims court depending on the amount-limit where you live. Otherwise, its off to regular court you go, which can be expensive and confusing.

Personal loan not being repaid - should I sue?

loan

You should sue him immediately in small claims court. If you keep putting it off, eventually the statute will be over.

Good luck.|||The first thing you should do, is get a more formal document stating the loan amount, date loaned, interest rate, promise to pay, and get him to sign it.

There are a lot of promissory note forms on the internet.

The next thing to do once you get this, or if he refuses to sign it, is go to an attorney to determine how best to collect it.