Defendant has no assets..Worth pursuing?

Question

I loaned 2 friends(a married couple) money to make a down payment on a car. I have a letter stating the facts of the loan with payment requirements with both of their signatures on it. The case is pretty much cut and dry as far as that goes. I would win in small claims no questions about it. However, even though they both have steady jobs, they have no assets. The car that I loaned them the money for is being financed, they have no real estate, or no house. They are renters and basically have nothing of their own. I was told that before you consider suing, you have to make sure the defendant is able to pay you. I know there are other options like wage garnishment but I researched that and Florida does not allow you to garnish head of household's wages. I could garnish the other parties paycheck but they have to make a certain amount to be eligible for garnishment and I am not sure if they make the certain amount. Do you think it is worth it, or am I wasting my time?

I have tried all reasonable efforts to get the money back..By the payment arrangment we made the money should have been paid back 2 months ago. They will not return my calls..It was $1000.00 and they agrred to pay me $100.00 per week per our contract.

Unfortunately as I found out the car has his mother as a co-signer and i was told I could not pursue anything aganist the car because of that.

Answer 1

Will they ever, in the future, have assets worth anything? Probably, as they get older.

There is a statute of limitations for debts, and after that time passes, you will be forever barred from collecting on this debt. Your best bet would be to sue them before the statute of limitations runs out. This way you will have a judgement against them in case they ever do acquire any assets. This jugement will also let you levy their bank accounts or garnish their wages in the future.

Like I said, sue them before the statute of limitations runs out. You will get the judgement, and can renew it again and again, so that you have decades in which to collect the money. Once you get the judgement, you can also charge interest on the amount of the judgement. It might take a long time, but eventually you'll get your money plus the interest paid back to you.

Answer 2

Honestly , you could but as last resort, do you still consider them friends? You could lose the friendship if you do, Also , have you asked them to make small payments like 25.00 or 50.00 A month, They maybe having a rough time money wise, as most all Americans are now a days. Unless you are just filthy rich. I would consider talking to them and say hey , I have contract that you said you would pay me back , I really need you to pay me back , even if it is small amount monthly, (at least you are getting money back) I would hate to have to go to small claims court and Jeopardize our friendship over something that can be easily fixed.

Answer 3

I have a few suggestions , first I realize they are financing the car but I would find out if you could put an additional lien on the car so if they sell it at a later date you may possibly receive your money back in order for them to sell it. You may also consider presenting the loss to small claims court and when you win present the results to the credit bureau , this may persuade them to pay up if they decide to apply for another loan at a later date. Third you may just chalk it up to experience and not loan them money in the future.

Answer 4

Garnish their wages. Let me ask you a couple of things about your deadbeat friends. Don't you think you are entitled to your money? Do these friends smoke...buy luxury things...go out to the movies, bar or dinner??? Chances are they do at least a couple of these. They both work so there are no excuses. Even if they pay a little at a time. If I had to borrow from someone I cared about...I would work my *** off to pay them back. These people do not value your friendship if they do not! GARNISH THEIR WAGES IF YOU HAVE TO!

Answer 5

Did you have a time frame where the loan would be repaid by?
If you were to take them to small claims, you would be able to find out if the person makes the amount. They would have to claim income.
One thing you could do is get the court to give you the car that you could sell, take what you are owed, and give them the rest.

Answer 6

Yes it's worth pursuing, if they get a better job or a raise they may fall into the category to collect. Try to get payments from them, if there is a time limit in your state to file, even a small good will payment will extend that time and show that they had every intention of trying to repay you.

Answer 7

It's better to work out a settlement. How much did you loan them? If you're willing to wait a bit, talk to them about monthly payments on their own. If they're not open to the idea, THEN pursue with with a lawyer.

Keep in mind that maximum chargable interest varies from state to state if you wish to tack on interest. Charging excessive interest is called "usury" and is a state crime.

Answer 8

Regardless of their assets if you win in court they have to make restitution. What's to say they don't get a better paying job a month from now. Once the court finds them to repay they will have to do so regardless of time, so yes it is well worth your time and effort - and in small claims court if you win the defendant pays you legal fees.

Answer 9

Reducing the debt to a formal judgment adds other options down the road. Even if people don't have assets now, they might in the future.

And a judgment on the merits in your favor is probably easier to enforce than simply the contract itself.

Answer 10

Worth a trip to small claims court, even if you don't get your money. If they get a judgement against them it would stay on their credit report for 10 years. So it would at least teach them to never do it again. Also, for the principle.