The client, as creditor, lent money to the debtor on two occasions. When the debtor requested a loan for the stated purpose of acquiring real estate, the creditor obtained a personal credit loan and delivered funds to the debtor under an agreement for 9% annual interest. Contrary to that promise, the debtor used all of the money for cryptocurrency investment.
The debtor later requested an additional loan, stating that the debtor would exchange real estate to be acquired in the future. The creditor entered into another agreement with annual interest of 14%. However, the debtor failed to perform the promised real estate exchange and later changed position, saying that principal and interest would be repaid later. Although the debtor made several partial payments of interest and principal, from mid-June onward the debtor defaulted on both principal and interest.
Law Firm Taelim clearly argued that the client had the right to claim full payment of the loan amount under the agreement with the debtor. The attorneys filed an application for a payment order to secure prompt recovery, arguing that the debtor was obligated to pay the agreed principal and delay damages calculated at 12% per year under the Act on Special Cases Concerning Expedition, etc. of Legal Proceedings.
The court accepted Taelim??s arguments and granted the payment order, recognizing that the creditor??s application was well founded. This case shows that even where a debtor breaches trust in a private loan transaction by misrepresenting the purpose of the loan or failing to honor a later promise, a creditor may promptly secure a claim. In a clear monetary claim where the debtor does not substantially dispute the debt itself, the payment-order procedure can efficiently provide an enforceable title and protect the creditor??s rights more quickly than ordinary litigation.
** If you are facing a situation similar to the above case, please feel free to contact Law Firm Taelim at any time.
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