If there is a written agreement to repay a loan and the agreement has been followed, can the lender sue borrower for the full amount to be paid at once?
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If there is a written agreement to repay a loan and the agreement has been followed, can the lender sue borrower for the full amount to be paid at once?
There is an agreement in writing between 2 ex’es regarding a loan. The agreement that both parties agreed upon is $30 a month. This amount has been paid each month. Could the loaner sue the borrower in small claims court for the full amount even though all payments have been made per the mutual written agreement?
Asked on February 13, 2011 under Bankruptcy Law, Ohio
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
Agreements like the one described in your question are enforceable. If there was an agreement to a certain payment schedule, and the paying party has been honoring that agreement, the other party may not sue for payment in full. If the paying party breaches the agreement, then depending on the exact terms of the agreement and the exact circumstances, it may then be the case that the creditor party can sue for everything. However, in the normal course of events, when there is an agreement between two parties creating a payment schedule for a debt, as long as the debt is paid as per that agreement, there should be no grounds for a lawsuit.
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