QLD How to Recover Debt from Friend?

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Logman

Active Member
2 July 2017
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Hi,

I loaned a friend $21,000 a few months ago for what he claimed was "life saving" surgery for his critically ill grandson. I was dubious at the time but he kept pressuring me until I finally gave in and loaned him the money.

He told me that it would be paid back in September as he was receiving a Superannuation payout. September has passed and he now advises me that he can't pay me until May next year. I have recently found out that this person has done jail time for embezzlement.

I am now virtually broke and need that money for living expenses and my own legal fees in the family court. Is there any action I can take to recover this debt or have I lost it for good?

I admit that I feel incompetent for not getting something in writing from him, however, I did pressure him for this and he would not commit. He just put more pressure on me and I succumbed. I did make sure that all financial transactions were done via bank transfers, so it's all traceable.

I accept I done a stupid thing, but I was only trying to help and I trusted the person.

What are my options?
 

Rob Legat - SBPL

Lawyer
LawConnect (LawTap) Verified
16 February 2017
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2,894
Gold Coast, Queensland
lawtap.com
Your first step is to write your 'friend' a letter of demand. You can easily find examples with a quick internet search. The letter should set out the details of the loan you made to them, that the agreement was they would pay you back in September of this year, that they haven't done so, and require that they repay you or enter into an acceptable repayment arrangement within a 'reasonable' time (I'd suggest 30 days).

If they fail to do that, your next step if you want to pursue it is to take the matter to 'court'. For this amount of money, you could file it with QCAT as a Minor Civil Dispute - Minor Debt (they cover debts up to $25,000).

QCAT does not allow legal representation without leave, so it's tailor made for self-representing litigants. Forms and information statements can be found at www.qcat.qld.gov.au.