Loan in the family – it’s a good idea to define the terms

Financial disagreements can effectively contribute to the end of even a long-standing friendship. In practice, they arise when the borrower begins to evade paying his obligations. Does this mean that it is better to refuse to lend money to a friend who finds himself in need.
When deciding to lend money to a friend or family member, it is worth taking care to confirm that such financial assistance actually took place. This will make it much easier to assert your rights in case it turns out that the borrower does not meet his obligations.
If we want to help a loved one in need, we do not decide to give cash „to hand”, but to a bank transfer. In this way we get confirmation that the loan was granted. An even safer solution is to write a contract, which will be signed by the borrower and thus confirm the receipt of money. Include in it such necessary information as the amount of the loan, the date of support and the date by which the friend undertakes to return the debt. According to the Civil Code (Article 720), the agreement can also be documented in another form. It may be confirmed by e.g.: an e-mail, a text message or a recording of a conversation containing the parties' agreements.
It is also worth knowing that the regulations in force in our country allow contracts to be concluded verbally, which are as binding for the parties as written provisions. In the case of loans, however, a simple „deal” is not the best solution, because on its basis it will be much more difficult to assert your claims. Of course, this does not mean that the recovery of money in such a case is completely impossible.
Everything depends on how much money we borrowed. If it was less than 1000 PLN, a bank transfer (if the money was transferred to an account), but also the testimony of witnesses will be a proof of support. However, it is worth knowing that in accordance with the Civil Code (Article 720 § 2), when the amount of the loan exceeds the amount mentioned above, we should draw up an appropriate civil law agreement. This provision should not be treated as an obligation, but as a recommendation. However, we should remember that if we do not fulfill this formality and do not try to draw up an agreement, we have less chance to recover the money.
If you want to borrow a large sum of money, it is worth additionally choose one of the ways of securing the repayment of the loan. Deciding on such a solution, we increase the likelihood that the friend will not avoid repayment of the obligation, otherwise, he will have to reckon with greater consequences than in the case of signing a „simple” statement in which he declares to return the borrowed amount.
One of the most popular forms of security is a loan guarantee. If the borrower evades repayment, this obligation falls on the guarantor, i.e. the person who guarantees repayment of the debt. When choosing this solution, you should make sure that the financial situation of the guarantor will allow for the possible repayment of money.
A friend or a close friend to whom you lend money may also agree to voluntarily submit to debt enforcement, i.e. to demand top-down repayment of the loan without the need to initiate legal proceedings.
By borrowing money with this option, the borrower agrees to bear the consequences of failure to repay the debt on time, which in practice means the execution of the debt from his assets. The use of this method of securing the repayment of a loan requires the preparation of an appropriate notarial deed, which will inform about the obligation to pay a specified amount of money by a specified date or to release an item of property with a value equal to the borrowed amount.
The person to whom we lend money may also sign a promissory note, which will obligate him to repay the amount due. A bill of exchange is a security, the operation and force of which are regulated by the bill of exchange law. Its value as a form of collateral increases when it is guaranteed by a third party. If the borrower fails to repay the loan, the bill of exchange, as well as the other mentioned methods of securing the loan repayment, may serve as evidence in court proceedings.
Taking care of a written confirmation of granting the loan and implementing formal means of securing its repayment, unfortunately will not protect us from a dishonest acquaintance, who delays returning the money and avoids all contact and amicable requests for repayment. However, even in such a case we are not left without a way out and have a chance to recover our money. If we find ourselves in such a situation, it is worth using the help of a lawyer who has experience in solving similar cases. It is especially important if you have used all amicable ways to influence the borrower and it did not work. Then we will probably be forced to take the case to court.
In a law office we will receive help, for example, in preparing a summons for payment addressed to a person,

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