NSW Recovering Personal Loan from a Friend?

[StupidIdiot]

Hi,

I recently gave a personal loan to a “friend” which is documented under a unsecured loan agreement. The terms of the loan are that weekly repayments be made by the “friend”, but they are not paying and in hindsight I believe they never intended to pay the loan at all.

They used the loan to buy a vehicle for $7000 (under bankruptcy threshold) and tools also presumably under the bankruptcy threshold and he has since mentioned that his brother claimed bankruptcy and works for cash to avoid repayments.

I believe if I was to take on a lawyer for the debt recovery he will claim bankruptcy and I would end up losing more. Is there any precedent for this to be prosecuted under any fraud law?

 

[Clancy]

Where do all these people come from who don't pay back loans from friends and family? It amazes me because i would never consider doing it myself.

The last time i ever lent a friend money, i eventually found myself in the situation of listening to their hard luck story why they cannot pay me back.... and at the same time they are telling me this story, smoking a cigarette in my face. All i can think is "and yet somehow you have no trouble affording cigarettes - Go F yourself"