Suing for loan: collecting and limits

[kazslo]

What is the name of your state? Illinois

Hi,

I have a friend who asked me for some advice. He gave his friend at the time a $1900 loan a few years ago (within the statute of limitations). As I understand it, the limit for small claims in cook county is $1500. When I told him that, he said fine, and wants to sue for only $1500 - god only knows why. Is that acceptable for him to forfiet the $400 and sue for only $1500? Is that $1500 limit inclusive to any legal fees he incurs?

Also, I have been reading that suing is easy, but collecting can be hell. What options will he have assuming he wins to collect on the judgment? Would he be able to request wage garnishment or anything like that to essentially not make it the choice of the defendant should he not pay up?

 

[dcatz]

You may want to re-check your information. I believe the jurisdictional limit is a $10,000 maximum for IL Small Claims. I expect that you can confirm that but, yes, it is possible to agree to sue for less than your entitlement, for jurisdictional reasons or otherwise. It’s called a remittitur.

Attorneys are permitted but not required in IL Small Claims, but I believe there is an exception for the Cook County "Pro Se" branch. I would suggest checking with that specific court. If you wish to use an attorney and it is permitted in the court in which you intend to proceed, attorneys’ fees are available only if permitted by contract (and you friend may not have that provision in any loan agreement) and are part of a judgment within the jurisdictional limits in Small Claims. I wouldn’t expect one to be required for a $1.5K or $1.9K loan, unless there was no documentary support, and it could be argued to be a gift.

If he gets judgment, he has all the enforcement options provided by IL law, including wage garnishment, bank garnishment, judgment lien etc. This is an excellent site for further questions about the IL SC process and much more:
http://www.illinoislegalaid.org/index.cfm?fuseaction=home.dsp_content&contentID=1001