Sued Over a Personal Loan With No Date or Schedule for Repayment
My question involves personal finance in the State of: new mexico
i borrowed money from my friend he wrote me a check on my name and he put as loan , we have no agreement or term written or verbal , now he put me in a court and he claiming that loan should be paid in 36 months , i paid some but still i owe him over $ 4000 , finally i get small claim court date for next week , financially i am in bad shape because of business failure and i have proof for that , most of my dept to collection and credit carts on money management but still i am not able to pay some others ,
wondering what to do at court ? i never refuse him i always said i owe u but i cant pay , it is real , when i get my court paper i had $ 10 on my account .
pls advise what to expect and what is my rights.
thx in advance
Re: Borrowed Money from Friend with No Term to Pay Back
If you owe and admit to owing the court will likely enter a judgment against you for the amount owed plus court costs. The creditor then has the right to use any legal means available to collect such as wage garnishment or asset seizure if allowed in your state.
Re: Borrowed Money from Friend with No Term to Pay Back
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alperzeren
i borrowed money from my friend
How long ago?
Re: Sued Over a Personal Loan With No Date or Schedule for Repayment
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Quoting
alperzeren
now he put me in a court and he claiming that loan should be paid in 36 months , i paid some but still i owe him over $ 4000
With no written agreement if he says "We agreed for full repayment within 36 months" and if you respond, "I never agreed to a date", the court has to choose which account is more credible and, even assuming no formal agreement, whether a prior pattern of payments establishes a schedule or what term of repayment would be reasonable.
For example, if you borrowed $12,000 and made monthly payments for the first 24 months, such that repayment would have been complete in 36 months, then stopped paying, that history makes it credible that the debt was to be repaid over 36 months.
"I can't afford to repay my debts" is not actually a defense to a debt. If you are in terrible financial shape with no reasonable way out, you should consider consulting a bankruptcy lawyer.