Debt recovery guide · Tricky situations
Recovering a personal loan — money lent to a friend, family member or individual
Money lent to a person is still a legal debt — a loan is a contract even without paperwork. The awkward part is rarely the law; it's the relationship. The good news: bank transfers and message histories usually prove personal loans surprisingly well, and a structured, civil process recovers them more often (and with less damage) than years of resentful reminders.
Prove it was a loan, not a gift
Gather the transfer records and every message that shows lending intent — 'I'll pay you back', repayment promises, part-payments. Courts decide these cases on exactly this evidence, and part-payments also helpfully reset the six-year limitation clock (five in Scotland).
The structured ask
One clear, kind, written request: the amount, what's been repaid, a realistic deadline or instalment offer. If that's ignored, a formal letter before action — from you or, more effectively, a third party — moves it from personal favour to formal debt. Many people pay at this point precisely because it de-personalises the problem.
If they still won't pay
Small claims court handles personal loans routinely; judgment can add interest and unlocks enforcement like attachment of earnings. A collection agency can run the whole process for you — often the sanity-preserving option when the debtor is someone you'd rather not chase yourself. We match personal-loan cases too: it's one of the debt types our panel takes.
Where this fits in the bigger picture
This is one step of a well-trodden path — demands, statutory add-ons, professional recovery, court, enforcement. The complete debt recovery guide walks the whole process, and the late payment calculator works out what you can add to a commercial debt today.
Related situations
General information, not legal advice.