Lending money to acquaintances – how not to be left without it?

The first and most important rule to remember when lending money is that the agreement must be recorded in writing. In fact, there are not so many requirements for a loan agreement, so the parties have sufficient freedom in choosing the form of the document and its content. The main thing is that the fact of transferring money and the obligation to return it are clearly recorded.

People often agree to lend money to acquaintances or friends, because they do not want to offend or spoil the relationship by refusing. But over time, it may turn out that returning these funds is much more difficult than giving them. Another problem arises: how to remind them of the debt and achieve its return without bringing the matter to a conflict. Most often, difficulties arise not because of large loans, but because of relatively small amounts transferred “on their word of honor”. How to properly issue a loan so that it does not look like a gift?

Loan only with documents: why a written form protects your money

The first and most important rule to remember when you lend money is that the agreement must be recorded in writing. The law does allow an oral loan, but only in exceptional cases: when the borrower is an individual, and the amount of the debt does not exceed 170 hryvnias (i.e. ten non-taxable minimum incomes of citizens). In all other situations, the loan must be drawn up in a written agreement or its electronic analogue.

Written registration is important not only from a legal point of view, but also from a practical one. If a dispute arises between the parties regarding the return of funds, it is the agreement that becomes the main evidence that the money was actually transferred and that the borrower is obliged to return it. Without such confirmation, it is quite difficult to prove the fact of the debt.

A written agreement allows you to clearly define the terms of the loan. The document can record the term of the return of the money, the procedure for its transfer, the possibility of accruing interest, or other important details. This helps to avoid different interpretations of agreements and reduces the risk of conflicts in the future.

Sometimes the parties additionally decide to have the agreement certified by a notary. In general, the law does not require the mandatory participation of a notary when concluding a loan agreement. However, such certification can be additional confirmation that the parties voluntarily concluded the agreement and personally signed the document.

At the same time, there are cases when contacting a notary is mandatory. For example, if the loan is secured by a mortgage — that is, a pledge of real estate. In such a situation, the mortgage agreement must have a notarial form in accordance with the requirements of the law.

How to properly record a loan to avoid problems

In fact, there are not so many requirements for a loan agreement, so the parties have sufficient freedom in choosing the form of the document and its content. The main thing is that the fact of transferring money and the obligation to return it are clearly recorded.

A loan can be drawn up in various ways. The most common option is to draw up a separate contract or written agreement. At the same time, the law allows for a simpler form – a receipt, which indicates the main terms of the agreement. Sometimes even bank transfers can serve as proof of the existence of a loan, if the purpose of the payment clearly states that the funds are being transferred specifically for the loan.

Regardless of the form of the document, it must contain key information. First of all, this is the amount of money that is being transferred and a clear indication that it is being provided specifically for the loan and is subject to return. It is also important to correctly identify the parties to the agreement. In addition to the surname, first name and patronymic, it is advisable to indicate the passport data, identification code and address of residence or stay of the borrower. This will help to avoid confusion and, if necessary, prove who exactly received the funds.

Do not forget about the general requirements for document execution. The contract or receipt must indicate the date and place of drawing up the document, and the signatures of the parties are placed immediately after the text. These details may seem like a formality, but they often play an important role in the event of disputes.

Special attention should be paid to confirming the fact of the transfer of money. The law connects the moment of concluding a loan agreement with the transfer of funds from the lender to the borrower. Therefore, it is important that the document indicates that the money has already been received. In this case, the contract will simultaneously perform the function of a receipt.

If the text of the contract does not mention the transfer of funds, then during their transfer it is necessary to additionally draw up a receipt. Another situation is when money is transferred non-cash. In this case, the confirmation is a bank payment document.

The lack of evidence of the transfer of money can significantly complicate their return. If the borrower refuses to fulfill his obligations voluntarily, it will be much more difficult to prove the debt without documents. Therefore, it is best to take care of the correct registration of the loan at the very beginning.

Legal steps to help you get your money back

The most difficult situation for a lender occurs when all agreements have been properly drawn up, but the borrower is still in no hurry to return the money. If the debtor refuses to voluntarily fulfill his obligations, in fact, there is only one main way to protect himself – going to court with a demand for debt collection.

The human right to judicial protection is guaranteed by law, so the lender can file a lawsuit and demand the return of funds in a forced manner. At the same time, it is worth considering certain features of the legislation that are in force during martial law. For example, there are currently restrictions on the application of penalties for bank loans, and moratoriums may also apply to the recovery of pledged property. However, these restrictions usually do not apply to ordinary loans between individuals, so the possibility of demanding the return of the debt through the court remains.

The statement of claim is filed in writing. The law does not establish a rigid template for the document, but certain requirements are imposed on its content. The application must state the circumstances of the case: when and under what conditions the funds were transferred, what obligations the borrower had and why they were not fulfilled. It is also necessary to clearly formulate your requirements for the debtor.

Documents confirming the existence of the debt must be attached to the claim. This may be a loan agreement, a receipt for receiving funds, bank documents on the transfer of money or other evidence. In addition, when applying to court, you must pay a court fee.

It is important to correctly determine which court to file a claim with. If at least one of the parties is an individual who does not carry out entrepreneurial activities, the case will be considered by the local general court. If all participants in the dispute are business entities – for example, companies or individual entrepreneurs – then the case falls under the jurisdiction of the commercial court.

You can represent your interests in court on your own. However, in practice, many people turn to a lawyer for help. A specialist helps to properly prepare the claim, collect the necessary evidence and represents the client’s interests during the trial. This significantly increases the chances of a successful refund.

How does forced debt recovery work after a court decision

When the court makes a decision to collect a debt, this does not mean that the money will be returned to the creditor immediately. The next stage is the enforcement of the court decision in a compulsory manner. For this, the court issues a special document – a writ of execution, on the basis of which the collection procedure begins.

To start the process, the creditor submits an executive document together with an application to the bailiff. Usually, a person can independently choose where to apply: to the State Bailiff Service or to a private bailiff. After accepting the documents, enforcement proceedings are opened, within the framework of which the search for the debtor’s property or funds begins.

The bailiff has the right to check the debtor’s bank accounts, establish the presence of real estate, vehicles or other property. If such assets are found, they may be subject to seizure. For example, money may be debited from bank accounts, property may be sold through electronic auctions, and in some cases, part of the debtor’s income may be regularly withheld from wages or other payments.

The funds received as a result of such actions are transferred to the lender until the debt is fully repaid. That is why the correct registration of the loan at the very beginning is of great importance. The presence of a contract or receipt greatly facilitates the ability to protect your rights and return the transferred money, even if the borrower refuses to fulfill the obligations voluntarily.

Legal assistance in debt recovery: how DE-JURE can help

When a debtor refuses to voluntarily return money, it is important to act legally competently. In such situations, the help of professional lawyers can significantly speed up the process and increase the chances of a real return of funds. The DE-YURE law firm can provide comprehensive assistance, including:

• analysis of documents and assessment of the chances of debt recovery;
• preparation of claims and pre-trial requirements to the debtor;
• drawing up a statement of claim and submitting it to the court;
• representation of the client’s interests during the trial;
• support of enforcement proceedings and control of the work of executors.

Professional legal support allows you to act faster, avoid errors in documents and effectively protect your rights.