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Lending a friend money with signed agreement, but issues still

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naivite

Junior Member
What is the name of your state (only U.S. law)? Alabama

I loaned a friend money. We agreed to terms which I wrote out and we both signed. It stated that my friend was to repay me in full by certain date. If full payment wasn't made by deadline, then friend had to sell me her lien free vehicle for $1 in lieu of repayment. And I was given the vehicle title to hold. I felt safe.

I wasn't repaid in full. Only about 12%. Filed complaint stating debt was to be paid in full or I would be able to purchase vehicle for $1. Judgment was in my favor for remaining balance. She had an attorney, admitted she could not pay, and said they would appeal to drag it out about a year. I asked about the vehicle to Judge. He said he could not advice, but apparently I did something wrong because it did not even seem to come into play.

It has now been over a year since I loaned her the money. I am ready to end this. Knowing she can't pay, can and how do I go after vehicle?

Any and all info is appreciated. I know nothing about this. Thanks in advance!
 


Just Blue

Senior Member
What is the name of your state (only U.S. law)? Alabama

I loaned a friend money. We agreed to terms which I wrote out and we both signed. It stated that my friend was to repay me in full by certain date. If full payment wasn't made by deadline, then friend had to sell me her lien free vehicle for $1 in lieu of repayment. And I was given the vehicle title to hold. I felt safe.

I wasn't repaid in full. Only about 12%. Filed complaint stating debt was to be paid in full or I would be able to purchase vehicle for $1. Judgment was in my favor for remaining balance. She had an attorney, admitted she could not pay, and said they would appeal to drag it out about a year. I asked about the vehicle to Judge. He said he could not advice, but apparently I did something wrong because it did not even seem to come into play.

It has now been over a year since I loaned her the money. I am ready to end this. Knowing she can't pay, can and how do I go after vehicle?

Any and all info is appreciated. I know nothing about this. Thanks in advance!
How much is owed on the loan and how much is the car worth?
 

BL

Senior Member
What is the name of your state (only U.S. law)? Alabama

I loaned a friend money. We agreed to terms which I wrote out and we both signed. It stated that my friend was to repay me in full by certain date. If full payment wasn't made by deadline, then friend had to sell me her lien free vehicle for $1 in lieu of repayment. And I was given the vehicle title to hold. I felt safe.

I wasn't repaid in full. Only about 12%. Filed complaint stating debt was to be paid in full or I would be able to purchase vehicle for $1. Judgment was in my favor for remaining balance. She had an attorney, admitted she could not pay, and said they would appeal to drag it out about a year. I asked about the vehicle to Judge. He said he could not advice, but apparently I did something wrong because it did not even seem to come into play.

It has now been over a year since I loaned her the money. I am ready to end this. Knowing she can't pay, can and how do I go after vehicle?

Any and all info is appreciated. I know nothing about this. Thanks in advance!
You have a money Judgment .

What have you done to collect ?

Has the other side appealed yet ?

Who's title is the auto's name in ? Is it paid off , or is there a lien on the title ?
 

naivite

Junior Member
You have a money Judgment .

What have you done to collect ?

Has the other side appealed yet ?

Who's title is the auto's name in ? Is it paid off , or is there a lien on the title ?

Received money judgment 11/6. Her attorney said he is going to appeal.

Title is in her name. She did not sign it as seller, but I do have the title. Lien free.
 

justalayman

Senior Member
Received money judgment 11/6. Her attorney said he is going to appeal.

Title is in her name. She did not sign it as seller, but I do have the title. Lien free.
sorry dude but you screwed up by accepting the judgment for the money owed. That means the contract is completed and all you have available is the judgment.

go collect on it.

what you needed to do is sue to enforce the clause in the judgment requiring her to transfer the title to you for $1. You didn't do that and since this has already been ruled on (with you obtaining a judgment), you no longer have an action to enforce the now completed contract.

and you physically having possession of a certificate of title is meaningless. She can get a copy from the state anytime she chooses to.
 

naivite

Junior Member
sorry dude but you screwed up by accepting the judgment for the money owed. That means the contract is completed and all you have available is the judgment.

go collect on it.

what you needed to do is sue to enforce the clause in the judgment requiring her to transfer the title to you for $1. You didn't do that and since this has already been ruled on (with you obtaining a judgment), you no longer have an action to enforce the now completed contract.

and you physically having possession of a certificate of title is meaningless. She can get a copy from the state anytime she chooses to.
Not really what I was hoping to hear, but thank you. Sucks that everybody I talked to said small claims is straight forward, simple, and no need for attorney or legal advice. Maybe others know the law better than me, but I had no clue.

I don't guess anything changes once he files for appeal. Such as me agreeing to drop suit and then could I sue to enforce clause requiring transfer of title?



Assuming no appeal is filed, what actions do I need to take to collect? I know she doesn't have the money.

If appeal is filed, it will go to a higher court and I should hire an attorney? If I win, can I recover legal fees? Or would I have to file for frivolous lawsuit to cover that?


Sorry to keep editing, but I'm adding thoughts so maybe you don't have to keep coming back to read new posts. I really do appreciate all taking time to read or advise. I was trying to help a friend, and now I'm the bad guy. True friends.....hmmmph
 
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justalayman

Senior Member
Not really what I was hoping to hear, but thank you. Sucks that everybody I talked to said small claims is straight forward, simple, and no need for attorney or legal advice. Maybe others know the law better than me, but I had no clue.

I don't guess anything changes once he files for appeal. Such as me agreeing to drop suit and then could I sue to enforce clause requiring transfer of title?



Assuming no appeal is filed, what actions do I need to take to collect? I know she doesn't have the money.
actually their appeal might be your best chance of reinvigorating the contract. If they appeal and are successful (depending on the overall reason), it may reset the entire scenario and allow you to sue for enforcement of the contract (you know, the clause that requires her to "pay you" with the transfer of the car).

if she has no money to collect from, then you can't really collect on a judgment. A really quick look shows a judgment to be good for 20 years so you have that long to attempt to collect on it. Make sure you do not have to take some action in the interim to keep it alive as some states do require you to do such things. I haven't looked into it that far.


I also have not looked into whether small claims courts in your state accept jurisdiction over enforcement of contracts such as yours. Make sure it does, if given a second chance here, before you file in small claims again. They may not be able to award anything more than money in small claims.

If small claims is the proper venue, then when you sue, sue to enforce the contract, specifically the clause requiring her to relinquish the vehicle to your ownership.
 

BL

Senior Member
Read through here.

http://www.collectyourjudgment.org/judgment-collection-resources/General-Methods-for-Collecting-Your-Judgment/

Appeals must be filed within 14 days. You'll most likely need an attorney and since most folks can not afford an attorney , you'll have to research how to argue and present your case on appeals .

Also read about collecting a Judgment.
 

naivite

Junior Member
actually their appeal might be your best chance of reinvigorating the contract. If they appeal and are successful (depending on the overall reason), it may reset the entire scenario and allow you to sue for enforcement of the contract (you know, the clause that requires her to "pay you" with the transfer of the car)..
But only if the appeal is successful?

I have definitely learned a lesson from this. I am OCD about my money, bills, etc. This has been nothing but a headache all along! I have so many text and facebook messages from her and looking back through them now I realize how stupid I was. She always had an excuse. She told me she was going to pay with income tax refund, then told me she had to pay. I later found out she did get a refund and used it to remodel her house. I also got information of her bragging to her friends that she was about to get her 16 yr. old daughter a vehicle for her b'day, and buy herself another vehicle. I talked to someone that loaned her money in the past. He said she obviously thought it was a gift because he was never repaid. She is no better than someone running a scam. I don't think she ever had intentions of repaying me. Just ranting.....:mad:
 

justalayman

Senior Member
I have rule:


never loan more money to friends or family than you can afford to throw out the window of your car while driving 70 mph down an interstate highway because your chances of recovery are often about the same.

now you have to learn how to enforce a judgment. It sounds like she may have more money than you give her credit for so it's time to start looking for it.
 
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naivite

Junior Member
I have rule:


never loan more money to friends or family than you can afford to throw out the window of your car while driving 70 mph down an interstate highway because your chances of recovery are often about the same.

now you have to learn how to enforce a judgment. It sounds like she may have more money than you give her credit for so it's time to start looking for it.

I heard a quote (obviously did not listen though) that said something like "If you ask a friend to borrow money and he tells you no, he is a true friend".

It's more of a principal and moral issue that really irritates me. If I asked anyone whether old friend or new acquaintance for money, they would get it back and probably sooner than agreed. I am also mad because she needed the money over a year ago. So she should be thankful that I loaned her the money or she would have probably lost a lot due to her situation at that time. And the contract, it was nothing I had to negotiate with her. She openly agreed to it. So it was just as much her terms as mine. Yet now that she hasn't done what she agreed to do, somehow I am the one that is the a$$h013. Not just to her, but her friends as well.

I may be stupid, but I like to think I am at least logical.
 

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