How to Recover Money You Lent to a Friend or Relative

A common and sensitive situation

Loans between friends or relatives are usually made on trust, without paperwork. Problems arise when the agreed time passes and the money does not come back. Many people give up because they have no contract or do not want to damage the relationship. In reality there are clear legal routes, and a step-by-step approach can protect your money and sometimes the relationship as well.

Before taking any action, three questions need answers: how you can prove the loan, when repayment became due and whether the limitation period has expired.

How to prove it was a loan

The best evidence is a written document: a contract, a receipt or a signed statement from the person who received the money. As a rule, Romanian law requires written proof for legal acts above a low value threshold. There are exceptions, for example where it was morally impossible to ask a close relative for a document. Even without a contract, other evidence can be very useful:

• A bank transfer, especially one marked as a loan.
• Messages, emails or chats in which the person acknowledges the debt or promises to pay.
• Partial repayments by the borrower, which show they accept the debt.
• Witnesses, within the limits allowed by law.

Limitation: do not let time run out

The right to claim repayment in court is, as a general rule, subject to a 3-year limitation period under the Romanian Civil Code. The period usually runs from the date the money was due to be repaid. If no repayment date was agreed, the position is more nuanced and needs a separate analysis.

The limitation period can be interrupted, for example when the borrower acknowledges the debt (including by a partial payment or a clear message) or when you file a claim in court. After an interruption, a new period starts. Keep any such acknowledgement.

The first formal step: a written demand

Before going to court, send a written demand asking for repayment within a reasonable period. It can be sent by registered post with acknowledgement of receipt or through a court bailiff. It serves several purposes: it shows you asked for payment, it may prompt the borrower to pay or propose instalments and, for some procedures, it is a mandatory step before going to court.

Keep a copy of the demand and proof of delivery. If you receive a reply that acknowledges the debt, it becomes valuable evidence.

In the demand, state the amount, the date and how the money was handed over, the deadline for repayment and the account where payment can be made. Keep the tone calm and factual. An aggressive letter can close the door to a settlement that would have been faster than any lawsuit.

Which court procedure to choose

If the demand does not work, the choice of procedure depends on the amount and on your evidence.

• Payment order (ordonanta de plata): a faster procedure, suitable where the debt is certain, quantified and due, and arises from a written document such as a contract or a signed acknowledgement. A formal demand to the debtor must be sent first.
• Small claims procedure: a simplified, mainly written procedure for amounts up to 10,000 lei, excluding interest and costs.
• Ordinary claim: the standard lawsuit, suitable for larger amounts, disputed debts or where the evidence must be supplemented with witnesses and other proof.

After judgment: enforcement

A favourable judgment does not mean the money automatically reaches your account. If the debtor does not pay voluntarily, the judgment can be enforced through a court bailiff, for example by garnishing wages or bank accounts. That is why, before starting proceedings, it is worth considering whether the debtor has income or assets from which the amount can be recovered.

Please note that this information is general. Choosing the right procedure and assessing the evidence require an individual analysis of each case.

This article is for information only and does not constitute legal advice. For an analysis of your specific situation, contact a lawyer.