Recover a personal loan to a friend?

Asked about 4 years ago - San Jose, CA

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Hello,

I have a personal loan of $90,000 (from my Home Equity Account) to a friend with the promise that he will return it with any accumulated interest within 90 days.

I gave him two checks - one for 50,000 and another for 40,000.

It has been more than a year (14 months to be exact), and he has only repaid me $9,000!

He has been telling for the last 5 months that he is trying to arrange for the money, but hardly ever picks up my phone, or responds to my email.

At this point, I have given up on getting the loan repaid through the friendship route.

Since we never wrote up a loan contract or any other legal document, what options do I have? He owe's me $80,000 in principal, and almost $11,000 in interest.

Attorney answers (2)

  1. Contributor Level 18

    Answered May 04, 2009 12:52. Disclaimer: The materials provided below are informational and should not be relied upon as legal advice.

    It seems like you had an agreements to loan money and be repaid. If your agreement was verbal only, you have 2 years from the time or breach to sue. If your agreement was written (that depends on the nature and contents of written communications between you), you have 4 years from the date of breach to sue. The safest position for you is to bring your lawsuit before the 2 years are up. You should consult your own attorney immediately to protect your legal rights.

  2. Contributor Level 14

    Answered May 04, 2009 16:23. You should consult an attorney immediately and discuss filing a lawsuit. If you did not do so, remember, even when dealing with friends and family always put agreements in writing.

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