It is legal to lend money, and when you do, the debt becomes the borrower's legal obligation to repay. For smaller loans, you can take legal action against your borrower if they do not pay by taking them to small claims court.
If this is the case, it's time for option two: put your friendship on the line and get real with your friend. Set up a coffee date and make it clear from the moment she sits down that you're there to discuss one thing. Be direct, remind her it was a loan, not a gift, and push her to come up with a plan to pay you back.
If you were honest, borrowed money with the intent to repay your friend, and now find that you can't pay your friend back, you should not be arrested or charged with any crime. Your friend may sue you in civil court to get a civil judgment. If you are sued, talk to an attorney about your options.
Yes, you can sue someone who owes you money. When someone keeps "forgetting" to pay you or flat out refuses to pay up, the situation can quickly become frustrating. You can take the issue to small claims court and pursue legal action if it falls between the minimum and maximum money thresholds under court rules.
Can I call the police if someone owes me money? You can, but they won't do anything about it. Debt collection is a civil matter. You'd need to sue in small claims court.
Legally speaking, in order to be found guilty of theft, you must have had the specific intention to never return what you borrowed to the owner when you initially borrowed the item in question.
The short answer is yes, you may have a claim for someone who broke a promise to you.
Always be courteous and use polite language, such as "Hello, I lent you money last month and it was due on this date. Is it possible for you to repay me now? " The time and tone of your message will reveal a lot about you, so make it friendly rather than frustrated or annoyed.
You must learn to say 'no' and protect your own finances. By upsetting your budget, you may affect your own goals. Besides, if you are married, it may lead to conflict with your spouse over the frequent borrowings. So, even if it means breaking off with your friend, learn to refuse when he asks for money next.
The FDCPA is one of the most important laws protecting your rights as someone who owes money. Not only does it make threats illegal, but it also bans other forms of creditor harassment.
Loan agreements, promissory notes, and IOUs
The most basic loan agreement is commonly called an "IOU." These are typically used between friends or relatives for small amounts of money, and simply state the dollar amount that is owed. They do not usually say when payment is due, nor include any interest provisions.
If you can't resolve the loan dispute on your own, consider legal action. Unfortunately, that's not a reality for everyone. When clear, consistent payment reminders and communication don't work, lenders may consider legal action to collect an unpaid loan. Seek legal advice before proceeding with any legal action.
The minimum type of theft charge is called, “Petty Larceny,” which means stealing something up to the value of $1,000. This frequently happens when people go places like departmental stores and take clothing, jewelry, or things of that nature.
You can say you don't have it, or a simple no will suffice. If she pushes you and wants to know why, tell her the truth -- she never pays you back, and you can no longer be her bank.
Essentially, you might think suing someone with no money is futile, but that's not the case. The law protects your rights and allows you to seek compensation if someone causes you harm or loss, regardless of their financial status.
It's possible to serve jail time if you've failed to pay your federal taxes or make child support payments. You can't go to jail merely for owing credit card, student loan, personal loan or other types of debt, which we'll explain below.
If the giver of the gift goes to court to sue the recipient for the value of the item or for the return of the item, both parties would present their evidence and then it would be up to the judge to decide who wins.
It is a civil matter, not criminal, so the police are not going to get involved. You have to sue and go after her and get a judgment. If she does not pay, you can then enforce it and go after money or assets.
The California statute of limitations for filing a judgment is ten years. If the debtor cannot pay or complete payment within this time, you must renew the judgment. The judgment must continue to be renewed to ensure the debtor pays the full amount.