People lend others money for various reasons. It might be a friend or family member in need of quick cash, a boyfriend or girlfriend who promises to pay you back, or an acquaintance or coworker who asks for loan. When lending someone money under the promise that the money will be returned to you in full, it is important to have a plan in place to ensure that you will get your money back.
Arranging the Loan
After agreeing to lend someone money, be sure to document the amount lent, the starting date of the loan, and the date you expect to be paid back. In order for this to be a legal document, you will need to draw up a promissory note, which is a legal agreement outlining the terms and conditions of the loan. In order to be valid, the document must be signed and notarized by both parties involved. If you do not choose this option, at least write down all the details of the loan for your own records.
Keeping Track of Your Money
After lending out your money, stay in touch with the person you lent the money to. As the date approaches when you expect to be paid back, get in contact with the your debtor. Let them know that, as you had both agreed, you expect to receive payment back from them soon. It is a good idea to not only inform them in person, but also inform them through a written note, email, or letter. By doing this, you will have written proof of your request for payment. If the debtor replies in email or letter form, save the response. This may be useful in the future in case of legal issues. If all goes well, the debtor will pay you back in a timely manner. However, all too often this is not the case.
Get Your Money Back
If the person to whom you lent money has not paid you back by the agreed date, make contact again. Ask the person when you can expect to be paid. If the person refuses or fails to pay you back by the second agreed date, this is a sign that it is time to call a collection attorney. A collection attorney can help you persuade your debtor to pay you back. Get help from a collection attorney to draft a legal letter demanding payment. Often this is enough to persuade the debtor to pay the money back, for fear of getting in legal trouble. However, if the person continues to refuse payment, an attorney can help you take further legal action to ensure that you get what is owed to you.
Collection Attorney in Kansas City
At the law office of Daniel C. Miller, LLC, you will find an experienced collection attorney who knows how to handle debt collection issues. Call today in the Kansas City area at (816) 875-0470 in Missouri and (913) 624-9646 in Kansas.