How Av{ai}lable Law Leveraged AI to Resolve a $5K Debt Dispute — Efficiently and Cost-Effectively

At Av{ai}lable Law, we believe that access to justice should be available for everyone, not just those who can afford steep attorney fees. We recently helped a client recover $7,500 from a $5,000 loan, using a combination of artificial intelligence and human oversight to resolve the matter quickly and efficiently. This case is a perfect example of how AI can level the legal playing field, making legal services not only accessible but also practical for disputes that wouldn’t justify overpriced attorney involvement.

The Problem: A Friendly Loan Gone Wrong

Our client, the creditor in this situation, had generously loaned a friend $5,000, agreeing to let them repay the debt in installments over the course of a year. To formalize the agreement, the creditor drafted a loan contract on his own, without the assistance of AI or a legal professional. Unfortunately, the contract was deficient in several key areas, lacking important provisions that would protect the creditor’s rights in the event of default. As fate would have it, the debtor missed several payments and eventually stopped making payments altogether.

Out of options and without a clear path forward, the creditor came to Av{ai}lable Law to explore what could be done.

Step 1: Using AI to Assess the Value of the Case

The first step was to determine the worth of the case. Using AI, we quickly compiled a summary of all payments made, interest accrued, late fees due, and other relevant data. Our AI-powered tools allowed us to process the complex financial details of the loan efficiently, which would have otherwise required significant manual calculations. In a matter of minutes, we had a comprehensive view of what the debtor owed.

The total? $7,500 — a sum that included the remaining loan balance, interest, and late fees.

Step 2: Drafting the Demand Letter

With the financial data in hand, the next step was to initiate communication with the debtor. Again, AI came to the rescue. We used it to draft a demand letter, incorporating the computational data to clearly outline the amount owed and the consequences of failing to resolve the debt. In this case, the debtor did not speak English, but thanks to our AI-powered translation capabilities, we were able to draft and deliver the demand letter in Spanish without missing a beat.

Our client didn’t have to worry about lengthy delays or translation fees — the entire process was seamless and immediate.

Step 3: Crafting a Repayment Agreement

After receiving the demand letter, the debtor agreed to negotiate a repayment plan. Using AI, we drafted a new Repayment Agreement that outlined clear and enforceable terms, providing a path forward that was fair for both parties. Again, the agreement was generated in both English and Spanish, ensuring clear communication with the debtor.

Throughout the negotiation process, AI-enabled tools allowed us to create legal documents that not only reflected the financial complexities of the case but also protected the creditor’s rights in the event of further late payments. For instance, we drafted Reservation of Rights agreements, giving our client a layer of protection if the debtor missed any future payments. These agreements were generated and delivered instantly, thanks to our AI tools.

The Result: A Win-Win Resolution

In the end, the creditor recovered a total of $7,500 on a $5,000 loan, which included interest, late fees, and missed payments. The cost? Only around $600 in legal fees. Total attorney time for drafting multiple contracts, facilitating negotiations, and handling communications in a foreign language? Just three hours.

Compare this with traditional law firms, which would likely have taken twice as long and charged twice as much, making the entire process impractical. At that rate, the cost of pursuing the loan would have eaten away at any recovery, making the case unworthy of pursuing altogether. Thanks to AI, not only was the loan dispute resolved favorably, but the creditor also walked away with a return that made financial sense.

Why This Matters

This case is a powerful proof of concept for how AI can change the legal industry for the better. Instead of being locked out of the legal system due to high costs and inefficient processes, our client was able to recover what was owed — quickly, affordably, and without sacrificing quality. For many people, small to mid-sized disputes like this one are not worth pursuing through traditional legal avenues because the cost outweighs the benefit. But with Av{ai}lable Law and the power of AI, these cases can be resolved efficiently, offering justice for all, not just those who can afford it.

This is just one example of how we are using AI to make legal services accessible, efficient, and affordable — bringing real justice within reach for everyone.