Suing out of state, personal loan

[Samph]

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

I recently lent a friend 1600.00 under a contract that I video taped the signing of in Florida. I have since moved to Georgia. Do I have to travel to Florida to file the small claim? Am I able to include travel expenses as a part of the payment to me? It seems like a very simple open and shut case, I can't imagine he would have a defense. Should I get an attorney anyways? I am worried about traveling back and forth, how should I go about this? Ever so grateful for any help!

Thank you!!!

 

[adjusterjack]

I recently lent a friend 1600.00 under a contract that I video taped the signing of in Florida. I have since moved to Georgia. Do I have to travel to Florida to file the small claim?

Yes.

Am I able to include travel expenses as a part of the payment to me?

No. Nobody ever gets that.

It seems like a very simple open and shut case, I can't imagine he would have a defense.

There's no such thing as an open and shut case. He might not have a defense to owing the money but if you didn't get the contract wording just right, there could be loopholes. I couldn't tell you what they are without reading the contract in its entirety.

Should I get an attorney anyways?

At $300 (average) per hour you'd spend more than the claim is worth and you don't get your attorney fees back either, unless you had the presence of mind to include a bilateral attorney fee provision in your contract. Did you?

I am worried about traveling back and forth, how should I go about this?

Plane, train, or automobile. Maybe boat depending on where in GA and FL the two of you are located.

 

[Samph]

Thank you.

How many times would my presence be required?

I wasn't expecting to take this to court, and I was not aware enough to add a bilateral attorney provision.

I'll try to best describe the contract below:

Personal Loan Agreement

This loan agreement is made and will be effective on 06/30/2016

Between

________ herein after referred to as the "Borrower" with a street address of

___________________________________________________________

And

______________ herein after referred to as the "Lender" with a street address of

____________________________________________________________

Terms and Conditions

Promise to Pay:

Within 2 months of Today, Borrower promises to pay the lender 1500 dollars
|$100| and interest as well as other charges avowed below.

Liability:

Although this agreement may be signed below by more than one person, each of the undersigned understands
That they are each as individuals responsible and jointly and severally liable for paying back the full amount.

Details of Loan: Agreed Between Borrower and Lender:

Amount of Loan:$1500
Other[Describe]$0
Amount financed:$0
Finance Charge:$100
Total of Payments:$1600
Annual Percentage Rate:3%

Repayment Of Loan:

Borrower will pay back in the following manner: Borrower will repay the amount of this note in 2 equal continuous
Monthly installments of $800 each on the 30th day of each month preliminary on the
30th day of 07, 2016, and end on 08/30, 2016

Signatures below


Blegh I feel ill now lol, I feel like it's written terribly.
I also video taped it and had his face and my face and had him sign it under video tape and counted the money
on tape.

Thank you for your help I really appreciate it.

 

[Samph]

I also read out aloud on the video a brief description of the deal, and than had him sign if that helps.


Thank you

 

[Samph]

And I have dozens of texts of him saying oh I'll pay you back on these dates. I've tried really hard
to work with him so that he would be okay and not have this payment affect him to terribly.

 

[adjusterjack]

Yeah, it's a terrible contract. You could have done better by looking for "promissory note" on the internet.

However, there doesn't seem to be any doubt that he agreed to pay you back by the end of two months and that is, at least, enforceable.

All you have to decide is whether you want to pursue it in court.

You can probably file your lawsuit by mail and hire a local process server in Florida.

But you can count on one or two trips to court.

Just understand that there is no "working with" a deadbeat. Even if you get a judgment, you may have the same trouble collecting on it as you do now.

 

[Samph]

In which case I can file for a Writ of Execution 30 days after the judgement correct?

I'm just interested in collecting the bulk of it back, was even going to let him keep 3 or 400, am just over it now.


You've been an incredible amount of help, thank you!!!

 

[Zigner]

Amount of Loan:$1500
Other[Describe]$0
Amount financed:$0
Finance Charge:$100
Total of Payments:$1600
Annual Percentage Rate:3%

Your APR is a little over 36%, not 3%. Your loan may be found to be criminally usurious and, as such, you may be penalized the entire amount of the loan (including the usurious interest amount.)

 

[adjusterjack]

Your APR is a little over 36%, not 3%. Your loan may be found to be criminally usurious and, as such, you may be penalized the entire amount of the loan (including the usurious interest amount.)

Yeah, I saw that, too, but figured he could cross that bridge when he came to it.

Florida also has a quirk in the wage garnishment law that might make the quarry exempt. Didn't want to bring that up either.

 

[Samph]

What do you mean? I thought a finance charge was the charge for giving him the loan? And the apr was different? I don't even want the 3% interest rate I just want the money back?

 

[Samph]

Should i just use the texts and video than?

 

[Samph]

Actually I can't use the video than, it has the contract on it. Damn this the last time I help anyone. Should I just mark it up a loss? Ugh this is awful news. Thank you for telling me that, this is ridiculous.

 

[Samph]

I gave him 1600, and thought the finance charge was just the cost of giving someone the loan. So I thought that separating them would just make the apr easier to calculate. Man this blows :/

 

[Samph]

I could get the bank statement that says I took out 1600, on the exact date I made the contract. Would that prove my ignorance and get me out of that?

 

[adjusterjack]

I could get the bank statement that says I took out 1600, on the exact date I made the contract. Would that prove my ignorance and get me out of that?

No.

It would only prove that you took $1600 out of the bank, nothing else.

I think you have enough to enforce the $1600 debt. If the interest rate is an issue, then the judge has the option of just not awarding you the interest, or adjusting the interest.

It's a well established part of contract law that if part of a contract is unenforceable or subject to modification by the court, the rest of the contract can be enforced as is.

Here's my suggestion:

Decide if you are willing to go to Florida to pursue this. Don't bluff.

Then send a demand letter with a deadline date to pay. Attach a completed but not filed small claims complaint form from the county where your debtor is located. Make it clear that you must received payment in full by the deadline date or you will file your lawsuit.

Again, don't bluff.

If the deadline date comes and goes and you don't file, your debtor gets to sit there and laugh at you.