Q: what should I do to get the full amount he owed to me, including the accrued interest?
Since October 2021, an individual has been indebted to me for $30,000, with a 10% monthly interest fee agreed upon by both parties. He failed to make any further payments after the first 2 months. Despite my numerous attempts to remind him of this obligation, he has not taken the necessary steps to repay the debt. Then he promised in February 2024 to sell his house and settle the debt with the proceeds. However, when I reached out to him earlier this month, he pretended to be unaware of the debt. Despite discovering that he has sold the property, he has yet to make any attempt to repay the debt.
A:
With some statutory exceptions (e.g., Pennsylvania Unfair Trade Practices and Consumer Protection Law (“UTPCPL”). In simple terms, the law gives people who buy goods or services for personal, family, or household purposes a way to privately sue businesses for illegal behavior and even for behavior that is deceptive or predatory), the US courts apply "the American Rule", which provides that, in most cases, each litigant is responsible for its own attorneys fees and court costs.
Given your debtor's behavior so far, you have little choice other than engaging PA counsel to bring suit, procure a judgment, and then pursue efforts to compel your debtor to repay you.
Your post fails to indicate whether the debt obligation is in writing. Be aware that for this type of obligation, a four-year limit from first defaulted/missed payment will control. You should also know that bankruptcy of your debtor is always an option.
The best time to employ counsel about your best path is up front, before you have invested money.
At this point, you should confer with experienced PA counsel without further delay.
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.
