Overdued Personal Loan

Australia's #1 for Law
Join 150,000 Australians every month. Ask a question, respond to a question and better understand the law today!
FREE - Join Now

din

Member
16 November 2018
1
0
1
Hi,
I borrowed a personal loan from a person on 2016 to pay for my university fee and signed a written notice about two weeks afterwards saying I will return the money on January 2017. However I could not return the money and the man kept harassing me by calling and emailing every day saying he’ll have me arrested and what not. I live alone in Australia so I was afraid to negotiate to pay in instalments from a man like that therefore I ignored to protect myself from any danger. But just over a month ago I got a written notice from a law firm asking me to return the money in a month or else they will file a case. I replied saying that I am willing to pay instalments on a monthly basis as I am still not full time employed and I could provide evidence. However they replied saying that I should return the money within a week orelse they will file a court case. Please advice me on what I should do in this instance. Most appreciated.
 

Paul Cott

Well-Known Member
LawConnect (LawTap) Verified
26 May 2014
342
100
889
Ballarat, Victoria
Hi, you should just simply say to them you do not have the funds to pay them. I'd fill out a statement of financial position which should prove your situation. Ultimately you can't stop them issuing a case against you but if you simply and genuinely do not have funds to pay, they would be incurring costs unnecessarily which they may ultimately not get back if they do issue. Hope that helps. Paul Cott.
 

Rob Legat - SBPL

Lawyer
LawConnect (LawTap) Verified
16 February 2017
2,452
514
2,894
Gold Coast, Queensland
lawtap.com
You also cannot be arrested for non-payment of a civil debt (which this is).