How Do I Recover Money I Loaned To A Company That Has Not Been Paid?
February 22nd, 2010 | by Frenday |Got into business with 2 friends several years ago. I put up $3000 for stock in the compamy and $27000 in the form of a loan. The partners bought me out (that is the $3000 for stock) but still owe the $27000. Since the business was struggling, I didn’t push for the money, but now 4 years have passed and I have asked that they start paying something each month because I know that they can’t handle a larger sum. I have yet to receive a dime. Can I file a lien or do I go to small claims court?
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2 Responses to “How Do I Recover Money I Loaned To A Company That Has Not Been Paid?”
By horrorre on Feb 22, 2010 | Reply
Depends on the terms of the loan. Do you have a document evidencing the loan? Was there collateral pledged against the loan? Are they in default based on the terms of the loan (i.e., the document specifically stated they would pay X dollars by X date and they haven’t)? If so, than yes, you can accelerate the loan and demand full payment. They may then either be forced to file bankruptcy or come to some other agreement with you to resolve it.
Because you’re talking about a decent amount of money, I don’t think small claims is the proper avenue. If all else fails, you may want to get a lawyer and file an actual suit against them to collect the money or some other resolution.
It’s very important that you have something proving that this was in fact a loan and you are a creditor. Otherwise, they can claim that the 27,000 was just an investment. Your rights are significantly diminished as a stockholder versus a creditor.
Hope that helps.
By codiane9 on Feb 22, 2010 | Reply
Judge Judy