Friend not paying back loan.

[throwaway1212]

What is the name of your state? CA

I gave $5000 to a friend of mine as a loan to help him out 6 months ago. I gave him a check (did not write "loan" on the memo) but it was electronically cashed.
Now the friend is moving to a different state (from CA to TX). I fear he won't return the money.

What can I do legally to make sure he pays?

 

[Just Blue]

What is the name of your state? CA

I gave $5000 to a friend of mine as a loan to help him out 6 months ago. I gave him a check (did not write "loan" on the memo) but it was electronically cashed.
Now the friend is moving to a different state (from CA to TX). I fear he won't return the money.

What can I do legally to make sure he pays?

When was the friend supposed to pay you back? Have you asked him about repayment?

 

[adjusterjack]

Seems like a gift to me.

Good luck getting it back.

 

[throwaway1212]

At the end of 6 months which is in a few days time. I have reminded him a couple of times and he was responded saying he will.

 

[throwaway1212]

It was not a gift though. It was a verbal contract that he would be paying it back.

 

[throwaway1212]

In hindsight, yes it would have made a lot of sense to write up a contract in paper.

 

[adjusterjack]

It was not a gift though

My comment was sarcasm.

At the end of 6 months which is in a few days time. I have reminded him a couple of times and he was responded saying he will.

You'll have to wait until the deadline passes and then sue him if he hasn't paid. Preferably get him served while still in CA.

Though even a successful lawsuit might not get you any money.

 

[quincy]

You can sue him before he leaves the state.

 

[throwaway1212]

He is moving soon, so it might not be possible to sue in CA itself. Is it difficult to sue people in different states (if the need arises?)
Sorry, my knowledge of law is extremely bad, please bear with me.

 

[throwaway1212]

My comment was sarcasm.



You'll have to wait until the deadline passes and then sue him if he hasn't paid. Preferably get him served while still in CA.

Though even a successful lawsuit might not get you any money.

It this because of moving to TX?

 

[quincy]

It can get costly to sue someone who lives in a different state. How soon is he moving?

 

[throwaway1212]

In a couple of days time. Plus the verbal period that we decided upon still has 2 weeks remaining. So, he will be gone when the period ends.
Do I still sue in small claims? or is this a different ballgame altogether?

 

[quincy]

You can sue once he breaches the terms of your contract. Apparently he hasn't done that yet.

It appears all you can do right now is pressure him to pay prior to his leaving the state.

Good luck.

 

[HRZ]

Pressure hm for a written affirmation of the loan and the due date ...and if possibly blue have him agree to all collection costs and fees if he fails to,pay in full by due date. Written evidence ofma loan is one heck of a lot stronger than oral comments.
..it's going to be a royal pain t pursue him in TX if he defaults !

 

[adjusterjack]

If he leaves the state before the deadline you will either have to sue him in Texas or sue him in CA and transfer the judgment to Texas and enforce it there.

Collection in Texas is problematic because Texas prohibits wage garnishment.