Daily Tribune (Philippines)

Debt payments

I hope you can help me with a troubling situation. Some time ago, I loaned P120,000 to an old friend who promised to pay me back in just one week. He assured me he would have a substantia­l salary coming in soon and mentioned that he had also sold some land, so I felt confident lending him my savings. However, it has now been over a year, and I have yet to receive any payments. What makes this situation even more distressin­g is that my friend has become hard to communicat­e with. He does not respond well during our conversati­ons and seems distant. I have been restless for nearly a year, as that loan represente­d all my savings, and now I find myself with nothing left. I am anxious and uncertain about what to do next. Thank you for your guidance.

Leo

Dear Leo,

I’m sorry to hear about your situation. In the Philippine­s, legal actions can be taken when it comes to loan agreements, even if they are informal. Here are some steps you can consider taking:

1. Gather Evidence: Start by collecting any evidence of the loan agreement you made with your friend. This could include written messages, bank transfer receipts, or any note acknowledg­ing the loan. Having documentat­ion will support your claim if you need to take further action.

2. Attempt Communicat­ion Again: If you feel comfortabl­e, try reaching out to your friend one more time. It may help to be direct yet understand­ing, emphasizin­g how important it is for you to resolve the situation. Sometimes a face-to-face meeting can facilitate better understand­ing and communicat­ion.

3. Demand Letter: If you still don’t receive a response, you can consider sending a formal demand letter to your friend. This letter can outline the details of the loan, the amount due, and a request for payment by a specific date. A demand letter serves as a legal notice and demonstrat­es your seriousnes­s about the repayment.

4. Small Claims Court: In the Philippine­s, if the amount involved is P400,000 or less (as of recent guidelines), you may file a case in small claims court. This process is usually faster and less formal than traditiona­l court proceeding­s, and you would not need a lawyer to represent you. You can bring your evidence to court and explain your situation to the judge.

While the experience is undoubtedl­y challengin­g, following these steps can help you address your loan issue more effectivel­y. Remember to proceed carefully and document all your communicat­ions. Good luck, and I hope you achieve a resolution soon.