A check was written for the sum of $7,000 and in memo section of check it was marked as a loan, copy of this check was cleared thru the bank. Can the person writing the check take the person that got this loan thru the court system to repay the loan. No paper work was done other than just writing the check.
The payee can be successfully sued as long as there was no consideration received in return for the $7,000. Confirm with local counsel.
You could bring suit in the Small Claims Division, however, you will need to have some evidence of the loan terms (payback terms). Without evidence of the payback terms, the court would be unable to find that the person borrowing the money was actually in default.
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