SOS!!!! How To Proceed....Carefully

[STJOHNS]

What is the name of your state?What is the name of your state? NY

Our family is trying to collect an outstanding personal debt of $330K. The personal loan is overdue by 4 years. We just have a signature on a small IOU piece of paper that the loan was taken out in the name of a woman. However, the funds were used for her husband's restaurant business (her name is not on the business). The restaurant is doing somewhat well.

How can we collect? We just found out they have used the BANKRUPTCY ploy in the past to get out of paying their debt. Plus, they use lawyers that purposely delay their case.

The debtor has no assets on the books. However, hidden cash assets are a true possibility.

To add injury, the debtor does not respond to any emails for the possibility of a lawsuit.

What is the best way to proceed? Can you tell us step-by-step.
THANKS!!!!!!!!!

 

[JETX]

What is the best way to proceed? Can you tell us step-by-step.

Yes, but I won't as there are simply too many possible variables.

I will tell you though that your first step should be to talk with an attorney. Your post says that this is a four year old agreement. The SOL in NY to enforce an agreement (oral or written) is six years. This means that you have only two more years to pursue this before it is DOA (unenforceable). That means you need to collect, or sue, within that time (a judgment is good for 20 years in NY).

Due to the size of the debt, you will have to use the higher courts, so an attorney will be required in any case.

Finally, based solely on your post, it appears that this loan is VERY weak in that there aren't any 'contract protections' such as security, etc. included.

Get with a good local 'collections attorney' and see what options you really have, if any.