repayment of cash loan

[kbynum]

I live in Toledo, Ohio. My husband owns a small business and an employee asked for a cash advance on his pay. We opted to give him $100 cash from our personal account, and he agreed verbally to pay us back in cash the next week. Bad idea--the employee quit. I have called the employee and talked to him on 4 or more occasions over the past month to discuss repayment of the money. Each time he says he'll have it tomorrow, or Friday, or so forth. And I know he's avoiding our calls via caller id. When I talked to him this evening he threatened to send his girlfriend out to "kick your a@$" if I showed up to try to collect the money. He also said "Well, I already paid it back. You don't have any proof, so I already paid you back. There's nothing you can do."

We only have a bank statement that shows the $100 withdraw at the ATM, and were too stupid/trusting to have him sign something along the lines of an IOU. If we decided to take him to small claims court, would we even have enough to make a case?? I've considered talking to my accountant to see if we can file an amended quarterly payroll tax return and not pay the full tax due (-$100) from his pay, and thus recover the money that way. But I don't know if that's legal either!!

Once bitten, twice shy. We won't be loaning out any more money to employees!! A hundred bucks doesn't sound like much, but we've only been in business a year and are really just getting on our feet.

Thanks!

Kim

 

[I AM ALWAYS LIABLE]

My response:

1. It's not worth the time and effort.

2. You'd lose in court without proof.

If there is a next time, get signed "Promissory Notes" - - not an I.O.U.

IAAL