How to collect money that is owed to you?

If someone borrows money from you but refuses to pay it back, what should you do?  Would you be willing to file a lawsuit to collect the debt or forgive the debt entirely?  It may be an awkward situation; however, if you are owed money it is only right that you are paid back in full.  You can try a written demand letter to collect an unpaid debt but you may need to file a lawsuit if the person ignores your collection attempts.  Having an attorney determine the type of loan agreement you have and the statute of limitations for the debt is advisable prior to filing a lawsuit.

For more on collection of debts owed to you read, “Legal How-To: Collecting Money Owed to You.”