Overdued Personal Loan

[din]

Hi,
I borrowed a personal loan from a person on 2016 to pay for my university fee and signed a written notice about two weeks afterwards saying I will return the money on January 2017. However I could not return the money and the man kept harassing me by calling and emailing every day saying he’ll have me arrested and what not. I live alone in Australia so I was afraid to negotiate to pay in instalments from a man like that therefore I ignored to protect myself from any danger. But just over a month ago I got a written notice from a law firm asking me to return the money in a month or else they will file a case. I replied saying that I am willing to pay instalments on a monthly basis as I am still not full time employed and I could provide evidence. However they replied saying that I should return the money within a week orelse they will file a court case. Please advice me on what I should do in this instance. Most appreciated.

 

[Paul Cott]

Hi, you should just simply say to them you do not have the funds to pay them. I'd fill out a statement of financial position which should prove your situation. Ultimately you can't stop them issuing a case against you but if you simply and genuinely do not have funds to pay, they would be incurring costs unnecessarily which they may ultimately not get back if they do issue. Hope that helps. Paul Cott.

 

[Rob Legat - SBPL]

You also cannot be arrested for non-payment of a civil debt (which this is).