Personal Debt between people

[crazybug2]

What is the name of your state? Florida

I have a signed agreement between me and someone else stating they owe me an amount that is over the small clams. It was signed back in 2003. I did talk to a lawyer before and he asked if he had anything in value. At that time he didn't. I just found out that he now has a personal business and I was wondering if I still have the right to go after him for the amount. And if so what type of lawyer would I need.

[Debt Guy]

The statute of limitation in Florida for a written agreement is 5 years. So, looks like you are OK on that point.

The first step to doing anything to collect is to sue in order to convert the note to a judgment. As you may know, FL is renowned as a debtor's haven since head of household wage garnishment is limited and you can't attach real estate. You could take his car away if he has any equity.

You say he has a personal business. What do you know about the business? Is it profitable? It is a sole prop or a partnership, S-corp, C-corp? In theory, your judgment could be used to wrestle away his ownership interest in the business. Does he really own it or is it in the name of his wife? How hard would it be for him to just collapse the business and move on if you paint him into a corner?

You need to know the answer to all these questions.

You did not say how much money you are talking about and I don't know what the max is for small claims in FL. If the amounts are reasonably close, just file in small claims for the max and do it yourself -- small claims is very informal and mostly an exercise in filling in the blanks on some forms and following preprinted instructions. A small claims judgment is just as valid as a judgment from "big" court.

If you decide to sue in state court, then you will probably want an attorney but you are not required to provided you can dance the courthouse two-step the way the judge wants -- it will require some study and effort on your part. If you hire an attorney, you want one with debt collection experience.

Other alternatives would be to go ahead and take your judgment and then just sit on it. Do that before the SOL expires. A judgment in FL is good for at least 5 years (might even be 10) and can be renewed once. So, you got a sword dangling over his head for a long time. Also, the judgment hits his credit report so you start to sting him some if he looks for financing.

[JETX]

Debt guy:
Good post. On point. Accurate.
Well done.

[Debt Guy]

Thank you kindly, sir. I try my best to be helpful.