Lent over $20,000, advice please.

[Shasta78]

What is the name of your state? SC

Hello, I lent a friend over the course of a year and a half over $20,000 to help get her on her feet and having a difficult time trying to recoup the money since she has not been able to to make ends meet , let alone start repaying.

At the time, around 5 years ago now, she wanted to sign something of me lending the money but I said foolishly, 'don't worry about it' you just get on your feet and when your other loans are finished then start to repay me back. She lives in another Country as well.

Now I have heard I can actually write some of my taxes off if I have signed document in regards to the money borrowed, is this true? Should I seek to get signed document pertaining to the money borrowed and the amount?

Any advice would be helpful.

 

[seniorjudge]

Q: Now I have heard I can actually write some of my taxes off if I have signed document in regards to the money borrowed, is this true?


A: Who told you this?

 

[Shasta78]

It was just a friend who mentioned this, saying because I used taxed income that was used for a personal loan, it could be exempt from taxes. And when repayment starts that money is too be classed as an income. I wasn't completely sure if that was the case but do you think it would be wise to get signed document for a loan over 5 years old stating the amount.

I had told the person not to worry about repaying till they had paid off their other loans which to this day they are still paying but I am hoping to oneday see the money back.

 

[JETX]

At the time, around 5 years ago now, she wanted to sign something of me lending the money but I said foolishly, 'don't worry about it' you just get on your feet and when your other loans are finished then start to repay me back. She lives in another Country as well.

Since she lives in another country, forget about recovery.

Now I have heard I can actually write some of my taxes off if I have signed document in regards to the money borrowed, is this true? Should I seek to get signed document pertaining to the money borrowed and the amount?

There is NOTHING about the law in your post. Ask your CPA or tax adviser of the viability of writing off a FOREIGN loan. Whether you get it in writing or not.... is entirely your own choice.

 

[Shasta78]

Thank you JETX. Didn't realize being in another country would matter. So I guess it would be too expensive to pursue it then. The person is not saying they do not owe me and has good intentions to pay it back, she just does not have 2 nickels to her name at the moment.

So I guess I will just have to be patient and anything received back will be a bonus. I just thought a paper being signed gave me more legal rights than our verbal agreement over 5 years ago.

 

[JETX]

Thank you JETX. Didn't realize being in another country would matter.

The least of your problems would be in getting a local (US) court to give you a judgment.
Some of the hard (or impossible) problems would be in serving proper notice of the lawsuit on the defendant.... and then trying to enforce the judgment (assuming you got that far).

From the US State Department:
"There is no bilateral treaty or multilateral international convention in force between the United States and any other country on reciprocal recognition and enforcement of judgments. Although there are many reasons for the absence of such agreements, a principal stumbling block appears to be the perception of many foreign states that U.S. money judgments are excessive according to their notions of liability. Moreover, foreign countries have objected to the extraterritorial jurisdiction asserted by courts in the United States. In consequence, absent a treaty, whether the courts of a foreign country would enforce a judgment issued by a court in the United States depends upon the internal laws of the foreign country and international comity. In many foreign countries, as in most jurisdictions in the United States, the recognition and enforcement of foreign judgments is governed by local domestic law and the principles of comity, reciprocity and res judicata (that is, that the issues in question have been decided already.)"
Source:
For more on the problems of enforcing a US judicial judgment in other countries, go to: http://travel.state.gov/law/info/judicial/judicial_691.html

 

[Shasta78]

Thank you once again, your very knowledgeable JETX.

Cheers