Recent Answers to Debt Collection Law Questions

I recently borrowed a significant sum of money from a friend to cover some unexpected medical expenses. We agreed verbally that I would repay the loan in monthly installments over a period of one year, but there was no written contract or agreement. Unfortunately, due to unforeseen circumstances, I am now facing financial hardship and am unable to make the agreed-upon payments. My friend is threatening legal action to recover the loan. Can they enforce the repayment agreement even though there is no written contract?

Laura H.

Answered Jun 28, 2024

If the final payment was scheduled for more than one year after the agreement was made, Massachusetts law generally requires a written document. Texts or emails are considered writings that may be used to fulfill this requirement. However, there may be an exception if the parties began performance. A local attorney can review the evidence to provide specific advice.

I bought a safety sling off Amazon (I am Paraplegic) and the first time I used the lifting harness it failed and I fell hitting my foot on the floor and injuring it. After a lengthy investigation I was awarded an $18,000 Settlement Agreement and McLarens did all negotiations for the Chinese Supplier (Vendor of Amazons) and the Wire Transfer was set up for payment. It has been over 100 days since the agreement was made and we still have not been paid. The agent of McLarens on behalf of the Chinese Company (NEFFT) is my only contact and negotiated this settlement with will not return my Email and 5 times she has emailed she says she will contact her Client but I do not hear back from her and have to ask all over again. She has stalled for over 100 days now. What is the time limit for non payment and if so can they be Sued for Breach and bad faith practices and would that qualify for 3 times the amount of Settlement for Breach? Also my injured Foot is getting worse on top of it! Please help if possible?

Merry K.

Answered Jun 21, 2024

I'm so sorry to hear about this. However, you posted on ContractsCounsel in the "question and answer" part of ContractsCounsel - I think you should obtain legal help, and for this, you need to post your request in the "project" area and expect to pay an attorney for help and advice. I'm sorry, I'm unable to answer all your questions - I just dropped in to provide these comments to you. (Also, please do not ask for me for a project, and I am not available for this type of work right now).

The house is an investment property with renters, my father lives in one room and we do have a rental agreement with him. He manages the property since my brother and sister who are the owners of the property are living in different states.

Joseph M.

Answered Feb 6, 2024

If the judgment was against your father and not you then you should be able to fight the lien.

I recently received a demand letter from an individual who claims I owe them money. I am interested in negotiating a settlement outside of court, but am unsure of the best way to go about this. I am looking to get advice from a lawyer on how to proceed in order to reach a mutually beneficial agreement.

Kimm M.

Answered Oct 13, 2023

As a general rule, the best approach would be to either send a letter in response that proposes the settlement terms you desire, or to call the individual and negotiate by phone.

I recently received a demand letter from a creditor regarding an unpaid debt. The letter states that I must pay the full amount within 30 days or they will take legal action. I am concerned that the debt may be outside the statute of limitations, and I wanted to know what legal recourse I have in this situation.

Myrna L.

Answered Sep 24, 2023

If you are certain that the debt is time barred, debtor may not sue you. In California, there is generally a 4-year limit for filing a lawsuit based on a written agreement. Just make sure you don’t inadvertently restart the statute of limitations, i.e. acknowledge the debt.

I recently sent a demand letter to a person who I believe owes me money. I am trying to collect the payment they owe me, but they are refusing to pay. I included a few laws in the demand letter that I believe are relevant to my situation, but I am not sure if I have included all of the necessary laws. I would like to make sure I am citing all of the applicable laws in my demand letter so that I can ensure the payment is collected.

Merry K.

Answered Sep 19, 2023

Unfortunately, often, one can cite all the laws one wants, but the person who owes the debt may simply be unwilling or unable to pay. If the debt is for less than $10,000, consider filing in Small Claims Court in your county. Here is the statewide information: https://www.courts.wa.gov/newsinfo/resources/?altMenu=smal&fa=newsinfo_jury.scc In addition, many counties, such as King, have their own websites and lots of information. When you file in Small Claims Court, be sure to include copies of all relevent paperwork, including any letters you sent to the defendent. And request reimbursement for the debt, interest, the cost of filing the Small Claims case, and any related costs/expenses. Even if you win, however, you may not get paid - but if you win, you will have some other ways to collect, such as garnishing wages or a bank account. I'd be happy to help coach you through the Small Claims process if you'd like to request my help through ContractsCounsel.com