So I had a good friend that asked me for a $1500 loan for 30 days in April 2009. He owns his own business and needed some cash to get him through a short-term crunch. I agreed and wrote him a check. At the end of 30 days, he didn't have the money to repay me and asked if he could have another 30 days to which I agreed. Again, we were good friends and I didn't think anything of it. He'd never reneged on any promise, etc. in the time we'd known each other.

Fast forward a few months later and he approached me about investing in his business which he claimed was beginning to take off with partnerships in the works with companies like Planet Smoothie, etc. I (stupidly) gave him $5000 and wrote the check to him personally instead of the corporation as he requested. There were "legal documents" to show my "investment" but I never received a fully-executed copy of them even after I asked/begged for them.

Our friendship ended as a result of all of this and here we are almost 2 years later and I've not gotten any of my money back even though I've asked for it and he's, in writing/e-mail, agreed that he owes the money and will pay me back the entire amount $6500 plus interest. Lately, the responses are, "I hope to have a repayment plan to you by Thursday of this week," and the plan states that he will pay $XX/week at a minimum until the loan is repaid. Of course, nothing happens in the way of repayment.

I'm now exploring taking him to small claims court for the entire amount plus interest but my question is this. He's self-employed so I don't think getting a judgement to garnish his wages holds much water since he doesn't have to report his earnings (yeah, it isn't legal but we know how that goes). What are my other options at this point? I'd rather not spend $5000 of my own money trying to recoup $6500.

We both live in Georgia, if that matters.

Thoughts? Suggestions?

... He's self-employed so I don't think getting a judgement to garnish his wages holds much water since he doesn't have to report his earnings (yeah, it isn't legal but we know how that goes). What are my other options at this point? I'd rather not spend $5000 of my own money trying to recoup $6500.

We both live in Georgia, if that matters.

Thoughts?? Suggestions??

Whether he reports his earnings properly doesn't matter. You wouldn't garnish self-employment income anyway. You would execute on his property, including cash on hand, bank accounts, etc.

Without even looking, I can tell you that the filing fee for small claims is nowhere near $5,000. More like $50. Add on service of process fees, etc. you are not looking at a major expense. SOL in oral agreements in Georgia is 4 years I think, but sue now.