Collection of Personal Loan
I want to take legal action to collect a debt from a friend. My husband and I loaned him 7400.00 for a car. He was paying interest only the first year and then stopped paying us. We continue to pay the loan and interest. We have tried to talk to him over and over but to no avail. He now owes us 8600.00. What legal action can we take and are there statuations of limitations for debt collection.
Thank you for your assistance.
1 Answer from Attorneys
Re: Collection of Personal Loan
File a lawsuit in district court for breach of contract. The statute of limitations for actions is found at MCL 600.5801 to 600.5869. Read the statutes to determine which statute applies to your case.
According to MCL 600.5807(8), no person may bring or maintain any action to recover damages or sums due for breach of contract, or to enforce the specific performance of any contract unless, after the claim first accrued to himself or to someone through whom he claims, he commences the action within 6 years for all other actions to recover damages or sums due for breach of contract.
If you think the friend is collectible, you are better off with the assistance of counsel and requesting payment of attorney fees.