If a borrower is making payments can a creditor still sue them for the full remaining balance?

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If a borrower is making payments can a creditor still sue them for the full remaining balance?

I borrowed $600 from a friend and told her I did not know when it could be repaid. This was 10 years ago and I still owe $460. I know I should have paid it off sooner and even just being consistent I could have. However now I have been making regular payments. She says she wants the balance and will take further action so I assume she will sue me. Should I continue to repay this or wait and can I be sued? This was a cash loan and no written agreements.

Asked on July 4, 2011 under Bankruptcy Law, Pennsylvania

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

1) An oral or verbal agreement is enforceable, including an oral or verbal agreement for a loan.

2) If a loan is not paid back according to its terms, the creditor or lender may sue. That is, if the loan is not repaid when it was supposed to be, the creditor can bring a legal action to collect. Even if the borrower has been trying to pay what he or she can, or has in fact been making whatever payments he or she can, the creditor may still sue, since the creditor is not obligated to accept partial payments or payments over time.

Whether you should continue to repay as you can or wait to be sued is a question you have to answer for yourself. The more you repay now, though, the less you can be sued for. Good luck.


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