OH Small claim or civil (breach of contract)

[DJV2]

In Aug, 2006 I lent $8500 to a friend at 6.5% payable over 39 months. I have a signed contract, signed by the friend and his wife. After 8 payments he stopped making payments and will no longer respond to requests for payment. With accrued interest the open balance is about $7800.

Should I forgo the amount over $3000 and file in small claims by myself or hire an attorney and file a civil suit? What happens if they file for bankruptcy between the time of a successful judgment and the time my money is recouped - assuming I won't get the funds in a lump sum and some sort of garnishment will occur?

I think I am inside the statute of limitations but should I go to small claims court does the amount of lapsed time hurt the case? I was going to "write off" the total amount as a loss and learn the lesson, never lend money, but with the current economic changes I am reconsidering that course of action.

What is the standard non-contingency total cost of suit like this? If I were to do a 44% contingency I might as well file in small claims court myself.

Thanks for any feedback in advance.

 

[BOR]

Should I forgo the amount over $3000 and file in small claims by myself or hire an attorney and file a civil suit? What happens if they file for bankruptcy between the time of a successful judgment and the time my money is recouped - assuming I won't get the funds in a lump sum and some sort of garnishment will occur?

There is no easy answer. An attorney is not required for regular/Municipal court, and I believe the jurisdiction is $15,000.00 there, I live in Ohio too.

It is not as easy as a small claims case, as they provide the quick and easy forms you just fill in, so hiring an attorney is probably the way to go. But if you want to forget the full amount, file in SC.

If they file for BK, they can list the debt on the schedule of debts, you will be listed as a creditor. Most likely it can be discharged??

I think I am inside the statute of limitations but should I go to small claims court does the amount of lapsed time hurt the case?

The type of court has no bearing on the limitations of action, it applies equally. In Ohio you have 15 years to enforce a written contract. There is case law that a credit card agreement is an open end account and 4 or 6 apply, but this is not your case. Six years for an oral contract.

I was going to "write off" the total amount as a loss and learn the lesson, never lend money, but with the current economic changes I am reconsidering that course of action.

What is the standard non-contingency total cost of suit like this? If I were to do a 44% contingency I might as well file in small claims court myself.

Thanks for any feedback in advance.

Winning, as you have a signed agreement, is not the problem, collection is.

The attorney may charge a flat fee, and it could exceed 2 grand for a trial? If he agrees to a contingenct fee, he only gets a % when every payment is made!