NSW Lent a Friend Money Who Hasn't Paid Me Back

[Wendy1978]

Hi there,
First off thanks for any advice, its very much appreciated. I've lent a friend $20,000 (personal loan) and its been a year and she isn't putting any effort in paying it back, also there has been lies that she will but never has come through. She has no money and is unemployed so I am worried she will just declare bankrupt so she doesn't have to pay it back. The agreement was verbal but there is bank transaction records.

What should I do, or will she get away just declaring bankruptcy?

The choices I have right now that I am deciding is one) go after her and get her bankrupt, but i'm not sure the effect, or two) to just wait for the best and hopefully she gets a job and hopefully she pays me back a little at a time?

 

[Rod]

First step is get something in writing from her acknowledging the debt, even if is text messages. Email is better.

Then see if you can arrange a payment plan while she is unemployed at say $10/week, and enter into a new payment plan when employed.

If she refuses to enter into a payment plan, then court seems like your only option.

 

[John R]

Hi @Wendy1978
I agree with @Rod. In addition, you may consider reviewing the following recent posts involving debt recovery in NSW:

• Personal Loan to Ex Boyfriend - Small Debt Claim?
• Debt Collector or Small Claims? Money Owed in NSW

Hope this helps. Please keep us updated with your progress.