Hello my name is Andres Sanchez and I am an attorney with 20 years of experience. What state are you in?

In Arkansas, a loan that was promised to be repaid within three months but has now gone unpaid for five months with no contact for two months is considered in default. Here’s what you need to know and possible steps you can take:

1. Nature of the Loan

• If you have a written agreement (promissory note, contract, or even texts/emails), that serves as evidence of the terms and repayment promise.
• If it was verbal only, you can still pursue collection, but it will come down to proof (your testimony, witnesses, payment records, etc.).

2. Demand for Payment

• Before going to court, it’s best to send a written demand letter:
• State the amount owed, the original agreement, and that payment was due within 3 months.
• Give a deadline (e.g., 10–14 days) to pay before you escalate.
• Send it certified mail with return receipt so you have proof.

3. Legal Remedies in Arkansas

• Small Claims Court: Arkansas small claims limit is $5,000 (Ark. Code § 16-17-704). If the loan is $5,000 or less, you can file in small claims without needing an attorney.
• District or Circuit Court: For amounts above $5,000, you’ll need to file in district or circuit court. You may want an attorney.

4. Statute of Limitations

• For written contracts in Arkansas: 5 years (Ark. Code § 16-56-111).
• For oral contracts: 3 years (Ark. Code § 16-56-105). You are well within time to file.

5. Collection Possibilities After Judgment

• If you sue and win, you can collect by:
• Wage garnishmen
• Bank account levy
• Lien on property
• But collection depends on whether the borrower has assets or income.

Alright. Do you have any other questions?

Unfortunately you are not able to do that. You can try and request me by name.

You're welcome. I hope everything works out for you.

My pleasure.