QLD Took Personal Loan for a Friend - Debt Still Unpaid

[Stephen Brumwell]

Just thought I'd post this issue on here to see if I can possibly get any thoughts on a direction I should go for this situation.

So, to explain:
I took out a $5K personal loan for a good friend a while back, for his new motorcycle, so he could work. Time has passed and things have happened and I have moved out of the house. Loan is still at $3.4K and weekly increments of $50 payment has stopped.

I have sent him an email regarding the payments for his debt, and given him options on taking out a new loan for the remaining amount, which clears mine and transfers it to him, and I get no reply.

It's been longer than usual from a weekly payment so now I want to explore my options in where I stand in this, and the best choice of action.

Thanks a lot in advance.

 

[Louise4007]

If a written loan agreement exists between yourself & the bank/financial institution where the loan was obtained, it is a legally binding document & can be enforced against you if you default. Is also legally binding if a formally written loan agreement exists between yourself & your friend however if no written loan agreement exists between yourself & your friend, there is almost no legal enforceability to recover the debt from him.

• The best option may be .. if you can locate your friend, attempt to renegotiate the terms of the verbal contract in existence between yourself & him.
• Also if his whereabouts can be established, you may be able to lodge a minor civil claim proceeding against him to recover the debt. It may however it may prove more difficult to do this & achieve a successful outcome in the absence of a formal written agreement between yourself & him.
• The court sometimes will interpret verbal contracts/agreements & infer or determine, by the acts or conduct of the parties, what each person's intentions were in relation to the performance of contractual obligations & rule accordingly.
• Consult a lawyer & good luck with this.