A friend of mine lent $12,000.00 to his sister via a written personal loan
agreement signed by both parties. The agreement calls for his sister to
pay
the loan back over a course of two years ($500 monthly).
Four months has passed and the debtor has not made any payments back. My
friend is considering suing.
QUESTION: Suppose my friend files a lawsuit for the $2,000.00 that is
currently in default ($500 * 4 months) and wins judgment in court.
Suppose
that 6 MORE MONTHS pass and his sister fails to pay 6 ADDITIONAL months
($3,000). Can my friend legally file a second lawsuit later on for the
additional 6 months of loan default or is he limited by virtue of the fact
that he sought legal remedy for the initial $2,000 default via the initial
lawsuit and the courts will deny him from suing for any further losses
incurred later on (i.e., the additional $3,000 default)? Thanks for your
help.
Generally, if the loan agreement says that in the event of default the
entire balance become due and payable automatically, then any judgment for
any portion will make future lawsuits unsuccessful. But if the loan
agreement says nothing about acceleration, or says that it is the option of
the payee, then it's ok to sue for the overdue payments and sue later for
another amount that becomes due. State laws have different rules about
this, so your friend should see a local attorney to verify the above before
doing anything.
McGyver
