Q: Can I sue in small claims court for the remainder of a personal loan if the borrower has not made a payment in a year?
I loaned someone $3,000 in 2017. We wrote a contract for this person to repay me within 5 years. I did not require a monthly minimum payment. I did, however, include 7.5% monthly interest (which I later found out is an illegal amount. Monthly interest must be much lower). I wrote the contract in one state, I live in a different state, and the other person lives in yet a different state. Am I able to sue this person in small claims court even though the 5 years is not up? They have only made $500 in payments since 2017. They have not made any payments in the last year. If so, which state should I sue in? The state the contract was drafted in? The state I live in? Or the state they live in?
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.