Got a personal loan from a friend (we are no longer speaking) a few years ago and it was agreed that I make monthly payments.
We have a written agreement that states the loan is to be paid off in Aug of this year.
I was paying $100 a month until this month.
Due to a financial setback, I have reduced my monthly payments to $50 a month.
I have about a $2500 balance left on the loan and cannot pay off the balance in Aug.
The friend wrote me a letter saying that they will not accept the $50 mo they payment and wants the $100 instead.
They are willing to extend the loan another 2 years but I cannot make the $100 payments any longer.
I wrote them stating this and enclosed my letter w/my last payment of $50.
The latest correspondence I received from them said that if I don't pay the $100 payments, they are going to take me to small claims court.
I am self employed, (dog walker), have no property or assets.
What can I expect the judgement to be against me if this goes to court?
Answer
You acknowledge that you owe the money. A judgment will be entered against you. Upon entry of the judgment they are entitled to 9% interest on the money you owe. If you have less than $4000 in the bank and little if any equity in your car and no steady income, they will be unable to seize any assets you may own, but that does not stop the 9% from accruing.
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