Best way to collect a debt?

[mikksr]

I loaned someone $3000, 3 years ago. This is over the small claims limit in Illinois which is $1500. I've sent a demand payment letter, keep getting promises of payment which never happens. I have a signed loan agreement, any advice on the next step would be helpful, thanks.

 

[JenniferH]

I know some people divide the amount, if it is over the small claims limit and file 2 separate claims for judgments. That way they keep it in small claims court. Once you get the judgment awarded, then you have more legal ways to collect.

 

[I AM ALWAYS LIABLE]

I know some people divide the amount, if it is over the small claims limit and file 2 separate claims for judgments. That way they keep it in small claims court. Once you get the judgment awarded, then you have more legal ways to collect.

My response:

Sorry, you can't do that. If the two claims, as you propose, arise from the same transaction, you can't "divide" the money and sue twice.

Think about it. If you could do as you suggest, then there would be no need for a $1,500.00 cap on jurisdiction, would there? People would merely start dividing up there $15,000.00 single debts (as an example), and file multiple Small Claims lawsuits. It doesn't work that way. And that's exactly the reason why there are courts with greater jurisdiction than the Small Claims court.

Let's assume that our writer did file two lawsuits, totaling $3,000.00. Once the court heard the first lawsuit for $1,500.00 concerning this transaction, the court would dismiss the second lawsuit for $1,500.00 on the grounds of "Res Judicata" and "Estoppel" because the second $1,500.00 arose from the same transaction as the first lawsuit.

If you would like "Points and Authorities" on this issue, let me know. Be glad to oblige.

IAAL

[Edited by I AM ALWAYS LIABLE on 12-09-2000 at 11:30 PM]

 

[JenniferH]

I understand your point. However, I think that you can do this (atleast it was done in MD) if the claim is for back rent and for damages. The plaintiff filed to claims 1 for the back rent, 1 for damages. If she filed both under 1 file # it would have gone over limit of that court. Court accepted this. So, I guess there are circumstances. I am with you tho, can't split otherwise whats the point of have diff. courts w/ diff. limits.

Thank you.

 

[I AM ALWAYS LIABLE]

I understand your point. However, I think that you can do this (atleast it was done in MD) if the claim is for back rent and for damages. The plaintiff filed to claims 1 for the back rent, 1 for damages. If she filed both under 1 file # it would have gone over limit of that court. Court accepted this. So, I guess there are circumstances. I am with you tho, can't split otherwise whats the point of have diff. courts w/ diff. limits.

Thank you.

My response:

That would, in fact, be allowed Jennifer. You see, back rent and damages to the apartment are two, distinct, "transactions". However, in our writer's case, it was a "single loan", or a "single transaction" - - in which case, splitting wouldn't be allowed.

Nice try though.

IAAL