A loan is not a gift: how to get your money back?

A popular saying goes: people borrow money from others for a certain period of time, but they give their own forever. Vladislav Martynchuk, a lawyer at the DE-JURE law firm, told us how to arrange a loan so that it does not turn into a gift, and how to return the money to the lender.

The main rule is no oral agreements: a loan agreement must be drawn up in writing or electronically. The loan agreement or receipt must contain information about the parties that allows them to be identified (identification code, place of residence, passport number), as well as the amount transferred in debt and confirmation of the transfer of funds to the borrower. The confirmation can be written in the agreement or issued as a separate receipt. If the transfer of funds is made in a non-cash form, the receipt is not required, since its role is performed by a payment order.

Thus, in the event of a dispute or dispute, the lender will have evidence confirming the transfer of money and the obligation of the other party to return it. In addition, the contract can prescribe additional conditions: the term and procedure for returning the money, interest accrual, and others. If desired, the parties can issue a notarial certificate.

If the borrower refuses to return the money, this dispute is resolved in court. When one of the parties is an individual, it is necessary to apply to the local general court, and if it is a dispute between two business entities – to the commercial court. The statement of claim should set out the circumstances of the dispute and the requirements for the borrower, and also attach to the claim evidence of the existence of the debt: a copy of the loan agreement, receipts, bank orders for the transfer of funds to the debtor, etc. In addition, it is necessary to pay a court fee.

Lawyers at DE-JURE help to draw up a statement of claim in accordance with procedural requirements, collect evidence, and also represent the client’s interests during the consideration of the case.