What to do if I applied and received a loan for $10,000 from my bank and in turn oan the money to a friend who has stopped paying it back?

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What to do if I applied and received a loan for $10,000 from my bank and in turn oan the money to a friend who has stopped paying it back?

He was paying the monthly installments for about half of the loan, then he stopped. My bank took all of the money I had in my account to pay on the loan which was about $1,200. I paid the remainder of the loan ($3200.94) to keep my good credit rating and now I want to sue him for my money back. I made this loan and agreement to him in another state, but I’ve moved since then. Can I file to sue him in the state I’m currently living in or do I have to file in where the transaction took place, and do I need an attorney? He lives in one state but he works in another. I do have a signed promissory note.

Asked on January 4, 2013 under Bankruptcy Law, Georgia

Answers:

S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

You can sue your friend for the amount of the loan plus interest and court costs.  Court costs would include the court filing fee and process server fee.  You are the plaintiff.  Your friend is the defendant.  A lawsuit can be filed in the state where the plaintiff resides or in the state where the defendant resides or in the state where the claim arose.

For convenience purposes such as filing documents with the court and court appearances, it would be advisable to file your lawsuit in the state where you currently reside.  Your friend can be served with your lawsuit (summons and complaint) by a process server located in or near the city where he resides.  You can find process servers listed under attorney services in the Yellow Pages or online.

Your lawsuit would be for breach of contract / account stated.  You can represent yourself or you can be represented by an attorney.


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