Q: Location: Westminster, CA 92683 I lent a friend 150k for her business, with the stipulation that she pays 5k/month

A: Have an attorney look at the written agreement in order to properly advise you. If the agreement does not have an "acceleration clause", you may have to sue for payments as they come due. If nothing is said in the agreement about attorney fees, those will not be recoverable.

A: In California, when someone fails to repay borrowed money as agreed in writing, you have the right to pursue legal action through small claims court or superior court, depending on the amount involved. Since your loan of $150,000 exceeds the small claims limit of $12,500, you'll need to file your case in superior court.

Before filing the lawsuit, send your friend formal demand letters via certified mail documenting the breach of contract and requesting payment. Keep copies of all correspondence, the original lending agreement, and any records of partial payments or communications about the loan. These documents will serve as crucial evidence in court, strengthening your position when seeking repayment of the principal amount plus potential interest and legal fees.

You should contact the Orange County Superior Court to begin the legal process, though working with an attorney would be beneficial given the substantial amount involved. California's statute of limitations for written contracts is four years from the date of breach, so make sure to file within this timeframe. Under California Civil Code Section 1717, if your written agreement includes provisions for attorney fees, you may be able to recover these costs along with the principal amount if you prevail in court. Remember that the court might also award prejudgment interest from the date of breach, even though your original agreement didn't include interest charges.