“Not yet” thought Marlene.

His daughter Wendy asked him for another loan of $1,000 (the eighth in recent months). It had become a regular habit, leaving Marlene upset and frustrated. She had marked them on her wall calendar.

She would never have thought of doing this to her daughter. Plus, she had other children, grandchildren, and her own needs to consider.

To date, Wendy had not repaid a single cent of any of the previous loans and had casually commented on several occasions that she simply viewed this as her future inheritance received now.

Like others in the same situation, Marlene was upset that Wendy couldn’t manage her money better and didn’t mind coming to her mother for more. Marlene’s budget has always been strained.

With a feeling of dread, Marlene also wondered who else she was taking money from. Wendy probably hadn’t paid them back either. She could be sweet and charming when it suited her.

Wendy and her boyfriend had recently gone on a nice beach vacation. Knowing approximately how much it had cost, it hurt Marlene that Wendy now wanted even more money from her.

Looking back, she regretted not discussing budgeting and reimbursement. She should have demanded a written loan agreement with all the conditions so that Wendy would take it more seriously. Otherwise, no loan.

If necessary, West Virginia law provides a ten-year statute of limitations for pursuing the debtor under written loan agreements. In the case of verbal loan agreements, it is five years.

To try to collect an unpaid loan without filing a lawsuit, writing a demand letter and mailing it to the debtor may be a good way to start. Use the “receipt requested” postal delivery service.

In the letter, describe the loan, demand repayment, and inform the debtor of your intention to take legal action if necessary.

If no repayment occurs and the total loans are $10,000 or less, a lawsuit can be filed in the magistrate court in the county where the debtor resides. If the debt is more, the complaint must be filed in the appropriate circuit court.

Once the debtor has received a copy of the formal complaint in accordance with state requirements, the debtor may file a written response.

Next, a hearing will be scheduled at which evidence about the loans and their terms, as well as testimony about non-repayment, will be needed to prove the case. Emails, phone messages, and text messages regarding loans are helpful.

The debtor will also have the opportunity to present his defense.

Winning the case does not mean that collecting the amount owed will be easy or automatic.

Before filing a lawsuit, determine if the person is employed or owns real estate or other assets that could be used to pay the debt. If the person is proof of recovery, the lawsuit will not result in any payment.

Counseling on unpaid loans or other legal matters is available from West Virginia Senior Legal Aid for state residents age 60 and older. Call 800-229-5068 or email [email protected].