Whatis my right to recover money thatI lent a friend?

I loaned a friend $30,000 to start a small business. Now the business is failing and he can’t pay me. He only owns a liquor license and a few fixtures in his store; he doesn’t own the building and owes landlord money as well.

Asked on December 6, 2010 under Bankruptcy Law, California

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Did you do anything "official" when you lent the friend the money like have him sign a loan agreement and a note?  Anything at all to sue on and to obtain a judgement to collect upon?  If yes, then that is what you need to do: sue him based upon the note.  If not, then I would suggest that you seek help from an attorney in your area in order to try and establish the loan otherwise with the proof you may have.  Once a judgement is obtained you can levy on personal property, garnish salary (not here though, right?), etc.  The liquor license is not transferable I am sure.  Seek help.  Good luck. 


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