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?

Get Legal Help Today

 Secured with SHA-256 Encryption

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 10 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.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption