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-I loaned a professional person money over 6 months. I insisted

 
SeekingtoRenderAid's Avatar
  • Answered by:SeekingtoRenderAid
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-I loaned a professional person money over 6 months. I insisted and got a written acknowledgement that I would be paid back in a week before I lent the money. I haven't been paid back and the answer is that the person has debts and needs to take out a loan. When I asked when I can expect to get paid back i was told "no time soon" which could mean forever. I then asked, "could you bread up the repayment in smaller amounts, the reply "was I don't want to do that, I want to pay it back all at once". What is the Statute of Limitations in NY STATE.? What is my recourse here? Small Claims Court? How do you enforce the verdict to collect.? If I was promised the money back in a week, but person now claims, he owes too much, then he knew he couldn't pay me back, when he asked for the loan. False pretenses.

 

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State/Country relating to question: New York

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-I loaned a professional person money over 6 months. I insisted and got a written acknowledgement that I would be paid back in a week before I lent the money. I haven't been paid back and the answer is that the person has debts and needs to take out a loan. When I asked when I can expect to get paid back i was told "no time soon" which could mean forever. I then asked, "could you bread up the repayment in smaller amounts, the reply "was I don't want to do that, I want to pay it back all at once

Submitted: 288 days ago.
Category: Business Law
Value: $25
Status: CLOSED
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Expert:  SeekingtoRenderAid replied 288 days ago.

Welcome! My goal is to do my very best to understand your situation and to provide a full and complete answer for you.

Good morning. The statute of limitations in NY is 6 years. You can file this in small claims court if the amount is $5,000 or less; otherwise it must be filed in a state civil court. Once the suit is filed and a
judgment awarded, you become a judgment creditor and can have the
sheriff serve a summons on the losing party for a debtor examination. That
forces the losing party to meet the judgment creditor in court and answer
questions under oath about the losing party's assets. After that information is obtained, the judgment
creditor has the power to garnish wages,
attach bank accounts, and/or have the sheriff seize other property to satisfy the judgment.



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Customer replied 288 days ago.

-If I win judgement, as a judgement creditor, is my collection subordinate to other loans made after my loan, or can borrower be cited or fined for making loan under false pretenses? ...will repay you in a week.?

Accepted Answer

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Expert:  SeekingtoRenderAid replied 288 days ago.

Once you get a judgment, you are going to have priority over all other unsecured loans because you can attach the borrower's assets at that stage. You could pursue criminal charges for fraud, but you would have to prove beyond a reasonable doubt that when he made those statements, he had no intent of complying. Intent is very difficult to prove. Your best route is the civil suit and then garnishment of wages and/or attachment of assets, including bank accounts.

Expert TypeAttorney
Category: Business Law
Pos. Feedback: 99.5 %
Accepts: 1858
Answered: 7/3/2012

Experience: Practiced law for 32 years; also business man

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