A loan between friends and family can make things quite complicated. Most of the time loans between friends and family members never get back the full amount of money that he or she loaned to someone . Here are four informative tips on what to do when friends and family don’t pay you back.
Try to make payment arrangements
Don’t let things get ugly between you guys. Try to talk them into making payment arrangements in order to get your money back. The small amount of money that you get from them is better than nothing. The person that you gave the loan to might be having money problems which they don’t want to admit due to image issues within themselves. Payment arrangements might work out best for the both of you. Don’t make the assumption that your relatives or friends will never pay you back.
Ask for items that equal to the amount of the loan
Perhaps they have a big screen TV that you could use and love to have. You could ask them to trade the big screen TV to call the loan even between the both of you. They might go for that idea of making a trade deal in order to make everything okay.
Threaten to take them to court
Depending upon the amount of money borrowed you can always file in small claims or higher. You might get your money back faster on the basis of threatening to sue them. Nobody wants to enter a courtroom unless they do it so frequently it doesn’t phase them anymore. Only threaten them as you are entering last resort methods.
Take them to court
File the paperwork to sue them in court. Make sure to bring along any contracts that you may have had signed with them when you gave them the money. They will be served with papers by the local police or someone from the court system. They might just end up paying the full amount right then just to avoid court. If they don’t pay up after being served then make sure in court that you get the money out of them if possible.
You can garnish their wages for a certain amount of money allowed to the fullest extent of the law in the state. Now, you can’t make them completely broke. You can make it so that they are basically almost broke and struggle each month to get by as you collect your money through garnishments.
Garnishments teaches people to pay up money that they owe because it hurts the pocket book a ton. They feel it much greater. They often regret not paying in the first place when a garnishment is taken out because there is nothing they can do about it. They will suffer each week or two weeks as the paycheck arrives until the day everything is paid back to you.