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QLD Took Personal Loan for a Friend - Debt Still Unpaid

Discussion in 'Debt and Bankruptcy Law Forum' started by Stephen Brumwell, 10 November 2015.

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  1. Stephen Brumwell

    10 November 2015
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    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 likes this.
  2. Louise4007

    Louise4007 Well-Known Member

    8 November 2015
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    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.
    Stephen Brumwell likes this.

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