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friends and money

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divaldi

Guest
What is the name of your state? California
Way back in 1988, I was approached by my closest friends sister and brother-in-law. They were in danger of losing their house and needed $2500.00 to bring it up to date. They had 4 daughters so I told them I would loan them the money providing they pay me back in time to pay my income taxes. They agreed I would have my money in the next 2 months.
I received one payment of $100.00. I have been calling them periodically all these years. My friends sister finally told me it is not her debt, but her husbands. She says she will not take responsibility for something that is his fault. (I think it was so long ago, she doesn't even remember how it all came down.) I would never have loaned her husband a cent. I didn't even know him well enough to loan him my umbrella on a rainy day.
Anyway I finally got them to start paying me about 2 years ago. The husband was supposed to pay me 100 bucks a month until paid off. He does well for awhile and then stops alltogether. Then he will start to send payments again for awhile. Now he has stopped again and I have not received a payment for about 5 months. They still own me $700.00. I told them if I have to take them to court that they will pay me 8% interest for the 15 years they didn't pay. That almost doubles the debt.
I am angry because these people have always had everything they wanted. They have even made a few trips to Europe. Two of their kids are now lawyers. You would think they would pay me my money.
Do I have a chance to win or has too much time passed since the original IOU was signed? Yes I have the IOU with the date and both of their signatures on it.
Thanks
 


I AM ALWAYS LIABLE

Senior Member
divaldi said:
What is the name of your state? California
Way back in 1988, I was approached by my closest friends sister and brother-in-law. They were in danger of losing their house and needed $2500.00 to bring it up to date. They had 4 daughters so I told them I would loan them the money providing they pay me back in time to pay my income taxes. They agreed I would have my money in the next 2 months.
I received one payment of $100.00. I have been calling them periodically all these years. My friends sister finally told me it is not her debt, but her husbands. She says she will not take responsibility for something that is his fault. (I think it was so long ago, she doesn't even remember how it all came down.) I would never have loaned her husband a cent. I didn't even know him well enough to loan him my umbrella on a rainy day.
Anyway I finally got them to start paying me about 2 years ago. The husband was supposed to pay me 100 bucks a month until paid off. He does well for awhile and then stops alltogether. Then he will start to send payments again for awhile. Now he has stopped again and I have not received a payment for about 5 months. They still own me $700.00. I told them if I have to take them to court that they will pay me 8% interest for the 15 years they didn't pay. That almost doubles the debt.
I am angry because these people have always had everything they wanted. They have even made a few trips to Europe. Two of their kids are now lawyers. You would think they would pay me my money.
Do I have a chance to win or has too much time passed since the original IOU was signed? Yes I have the IOU with the date and both of their signatures on it.
Thanks

My response:

What was the date of the very last payment made? What was the "form" of the payment; i.e., cash, check, etc.?

You can't go back the full 15 years for "interest" and the statutory interest rate is 10%.

IAAL
 
D

divaldi

Guest
The very last date I received a payment was May 10, 2003. He always sends a money order.
What should be the amount of the claim if the statutory interest rate is 10%? At what point does charging interest begin?
Thanks for the quick response. I really appreciate it. I can't believe I'm finally doing something about this.
 

I AM ALWAYS LIABLE

Senior Member
divaldi said:
The very last date I received a payment was May 10, 2003. He always sends a money order.
What should be the amount of the claim if the statutory interest rate is 10%? At what point does charging interest begin?
Thanks for the quick response. I really appreciate it. I can't believe I'm finally doing something about this.

My response:

I hope you made photocopies of the money order - - you'll need that as proof of payment.

Here's the reason why I say that:

Under normal circumstances, the Statute of Limitations on a written contract (or other evidence of debt; e.g., promissory note) is 4 years. So, from a debt dating back to 1988, you "normally" would have been out of luck, and your money would have been just so much smoke.

However, these are not "normal" circumstances. Fortunately for you, your friend(s) are not too smart. You see, each time they made a payment on the promissory note, they re-started the 4 year "clock" on the Statute of Limitations, breathing new life into your ability to enforce payments through a court ordered judgment.

So, in order to prove to the Small Claims judge that your promissory note hasn't expired (remember, as the Plaintiff, you have the "burden of proof") a copy of their money order would be all the proof you need. If you don't have that, all you can do is hope and pray that they make another payment to you so that you can copy that money order.

But, if you have the promissory note, and a copy of one of their most recent payments, then write a Demand letter to them, demanding payment in full, or the next communication they receive from you will be a Small Claims Summons.

Now, as for the interest rate - - in your promissory note, is there a provision for interest? If not, you can't sue for any interest. However, if you're fortunate enough to obtain a judgment, then that judgment carries a 10% interest rate until paid in full. Judgments are terrific; not only for the amount of interest, but for the fact that they last for 10 years, and are renewable every 10 year period thereafter - - AND the judgment keeps racking up interest at 10%.

Good luck to you.

IAAL
 
D

divaldi

Guest
I do have copies of all the money orders.
You have made my day.
Thanks so much.
 

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