Loaned money to acquaintance, haven't been receiving payments

[Discopizza]

What is the name of your state (only U.S. law)? Indiana

I loaned $13,000 to a former co-worker to pay off her other debts. She wrote out and signed an IOU to pay it back within two years. We agreed on bi-weekly payments of $300. I have several text messages from her confirming the agreement details and intent to pay. She borrowed the money in April and so far, I received one payment on May 6, and nothing since then. She rarely answers texts, and when she does, she promises to have money for me at a later date, but then doesn't text or respond to texts on that date. She is taking care of her mother, who is old and sick, so I try not to get aggressive in my messages to her, but I feel like she isn't taking it seriously and she constantly flakes out. She works full time, owns a house and a fairly nice car, so she should be able to afford the payments she agreed to, and suggested herself. Is there any legal recourse that maybe I can inform her of, in an effort to motivate her to start making her payments?

 

[Zigner]

What is the name of your state (only U.S. law)? Indiana

I loaned $13,000 to a former co-worker to pay off her other debts. She wrote out and signed an IOU to pay it back within two years. We agreed on bi-weekly payments of $300. I have several text messages from her confirming the agreement details and intent to pay. She borrowed the money in April and so far, I received one payment on May 6, and nothing since then. She rarely answers texts, and when she does, she promises to have money for me at a later date, but then doesn't text or respond to texts on that date. She is taking care of her mother, who is old and sick, so I try not to get aggressive in my messages to her, but I feel like she isn't taking it seriously and she constantly flakes out. She works full time, owns a house and a fairly nice car, so she should be able to afford the payments she agreed to, and suggested herself. Is there any legal recourse that maybe I can inform her of, in an effort to motivate her to start making her payments?

She HAD debts because she wasn't good at paying them off...what makes you think your loan will be any different?

The small claims limit in IN is $6,000. That means that, if you choose to sue her in small claims, that's the maximum you can sue for and you lose anything beyond that. The alternative is to hire an attorney to sue her in a higher court, but you won't be able to have her ordered to pay you the cost of the attorney, so you may end up paying so much that such a lawsuit is no longer worth it.

 

[single317dad]

Don't threaten to sue her unless you actually intend to do so.

You could hire a collection agency or sell the debt to a debt buyer. Both will be quite costly.

You can sue her yourself in small claims (with the mentioned limit) or superior court. You won't have to have an attorney, but I warn you that the road to collection is not an easy one. There is a steep learning curve for the successful pro se plaintiff.

Pure conjecture here, but your best chance at collection might be to hire an attorney, get a judgment, and seize assets or accounts that she inherits.

 

[Discopizza]

Thanks for the replies. I finally got a reply from her, so I'm hoping she'll start making her payments soon. I've given her way more chances than a bank or other private lender would. She says she's going through a lot right now, but she's been saying that for a couple of months. Argh!

 

[Zigner]

Thanks for the replies. I finally got a reply from her, so I'm hoping she'll start making her payments soon. I've given her way more chances than a bank or other private lender would. She says she's going through a lot right now, but she's been saying that for a couple of months. Argh!

You'll be back.

You aren't going to get your money...if the banks/other lenders couldn't, what makes you think you're so special?

 

[LdiJ]

Thanks for the replies. I finally got a reply from her, so I'm hoping she'll start making her payments soon. I've given her way more chances than a bank or other private lender would. She says she's going through a lot right now, but she's been saying that for a couple of months. Argh!

Its not impossibly difficult to file suit in Indiana without an attorney, even if the amount in question is too high for small claims court...particularly if the other party does not have an attorney either. If you get a judgment against her you have more options for collection than you have now.