NSW Friend Not Honouring Loan Agreement - What to Do?

[MSA]

I lent 80,000 AUD to a friend who promised to return the money in 4 weeks' time but now it's been more than 6 months and I am still chasing the guy.

Despite various promises, I haven't got any money back. I have a signed loan agreement along with statutory declaration regarding the loan amount and time frame of returning a loan. Now the guy isn't picking his phone and I don't know where he is.

I am desperately looking for help about my legal options and their costs. Do I need to hire a lawyer to pursue this further?

Generally how long does it take for resolving such disputes especially when other person isn't approachable? Can this be given to debt collectors? Can the court bind him to pay me in certain time frame?

 

[Lance]

Hi,

Unfortunately anything suggested isn't likely to be of much benefit to your friendship. You would need to pursue a civil claim against them in the general division of the local court. You are probably looking in the realm of several months, serving papers and wait times etcetera. I'm pretty sure the fee for application of a civil matter to the general division based on the information above is $239.

The decision of the Magistrate in general division will be binding and they can enforce recovery. I would suggest before it gets to this point you try to sort it out with your friend, It may be that they have lost it an don't have it to give back.

You may be able to recover most of the money but not all by negotiating and then you can go through the courts for the rest, but I suspect it will take some time through the court.

 

[MSA]

Thanks Lance, appreciate your reply.

Well I already tried what I could but no luck, every time he asks for some time but after that I get nothing.

Just few more things to clarify? Do I have to get a Lawyer to lodge a civil claim or can I do it by myself? Generally how does magistrate/court binds a person?

Thanks again for the guidance

 

[Lance]

Hi,

You can do it yourself but it might be worth getting some formal advice given you are talking about a large sum of money. The courts decision is binding and can be enforced by a few different methods. Some more information regarding enforcement can be found here:

http://www.localcourt.justice.nsw.g...d_penalties/finalising_civil/enforcement.aspx