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Personal cash loan collection based on a promissory note (not notarized).

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Roger85

Member
My sister was fully aware of the loan. They divorced a year after it was made.

If she hires an attorney, how does that work? What are the costs? I have never done it before, so I apologize for these basic questions.
 


Zigner

Senior Member, Non-Attorney
It matters in the sense that if it was a loan, and not a gift, it should be acknowledged and affirmed who was responsible for repaying it.
No, it really doesn't. Mom's agreement is with (former) son-in-law (hereinafter referred to as FSIL). Mom's recourse is against FSIL. If daughter was ordered to pay it as part of the divorce, then FSIL can seek compensation from daughter.

EDIT: This is no different than when a spouse is ordered to pay a bill that's in the other spouse's name. The creditor isn't bound by the divorce decree.
 

Taxing Matters

Overtaxed Member
Hello. My 79 year old mother has loaned $25K to her son in law (my sister's now ex-husband) almost 4 years ago. They both signed a promissory note (which was not notarized) the money will be returned within three years. Deadline passed last April, and he ignored several communication attempts. She also gave him cash, so there is no "receipt".

Does she has any chance of getting this money back in court?
She has a chance, sure. But bear in mind that she has the burden of proof in the case. She has to prove that she gave him the money, has to prove that he agreed to repay it by a certain date, and that he failed to pay as agreed. The promissory note will be very useful to prove the agreement and her testimony that he hasn't paid it will suffice for that unless he coughs up something to show he did pay it. The problem will be that if he denies she ever gave him the $25,000 in the first place she will have to provide evidence that she did. The ideal thing for that would be a cancelled check or other written acknowledgement that the money was paid. But if all she has is just her testimony that she did that might be a problem. After all, for loan that size few would give it in actual cash and even in those cases where they do make a large loan like that in cash they get written acknowledgment that the money was received (e.g. a cash receipt). So a court may be bit skeptical of her claim that she gave him the cash if he denies it.
 

Roger85

Member
The loan was for the business he was planning to buy. He did, but then year later he actually ended up in court with the seller, so from what I know he probably sold it for portion of the original price.
 

quincy

Senior Member
OK. Thank you. I really appreciate your time and advice.

So, what would you do in her place?
I would have an Illinois attorney look over the promissory note and anything else that might support the loan and, after this personal review, decide whether to pursue the former in son-in-law in small claims court for $10,000 (waiving $15,000) or hire the attorney to pursue the full amount in a higher court.

The $25,000 is not an insignificant sum of money.
 

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