Can you take someone to court if you lent them money?

Can you take someone to court if you lent them money?

To win a case, you need to have some evidence that your friend owes you money. This doesn’t have to be a written legal contract, with witnesses etc. Suing someone for money is a civil case and the judge will decide who wins “on the balance of probabilities“, looking at whose story seems most likely.

Is it necessary to notarize loan agreement?

A Promissory Note only requires the signature of a borrower, whereas the Loan Agreement should include signatures from both parties. Loan documents, however, have to be drawn on a stamp paper and notarized.

How do I make a legally binding loan agreement?

For a personal loan agreement to be enforceable, it must be documented in writing and signed by both parties. You may choose to keep a copy in your county recorder’s office if you wish, though it’s not legally necessary. It’s sufficient for both parties to keep their own copy, ideally in a safe place.

Why did I lent a friend £6, 000?

I lent a friend £6,000 so he could get his finances in gear and to help him start a business when he left his job. He was paying back £600 a month, which dropped to £500, and then stopped altogether. He now lives in Spain and still owes me £1,100.

Can you reclaim money lent in good faith?

All this would provide evidence that an agreement has been made between both parties. Although not having physical evidence can make reclaiming funds more difficult, the fact that the money was lent in good faith means you are within your rights to present a case at the small claims court.

Can you take legal action if someone lent you money?

This would give you the added advantage of visiting in person and suggest other repayments. If you decide that you can only get the money back through more official channels, you may be able to take legal action. It is unfortunate that there isn’t any written evidence in the form of a contract.

What should I do if my friend lent me money?

The small claims court may be an effective means to regain your money but you should be realistic about your chances of winning and whether the funds are recoverable at all if your friend simply does not have it. Some links in this article may be affiliate links. If you click on them we may earn a small commission.

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