Trying to recover money lent to inlaws. I Need Advice!!

[bigisland]

What is the name of your state? California

Hello all;
So basically my inlaws own a small construction contracting company in Hawaii and were in deperate need of a $25,000 to keep the business rolling. So I lent them the money and I had them sign a contract agreeing to pay back the $25,000. It now appears that my inlaws are involved in a bad business and they lost the $25,000 and the business is basically dead. They have no money and they say there is no way they can pay me back. But at this point they probably think I am too nice to sue them since I am a loving daughter inlaw in all. So I am wondering what should be my next step now and if there is any way I can get my money back. I will sue them if thats what it takes. The money is very important to me. I also am afraid that they are not being completely honest with me in terms of how or what they used the money that I lent to them. I really don't know what to do.

Thanks,
Julia

 

[VeronicaLodge]

Where is your husband in all this?

 

[bigisland]

They are telling him all of the same things. He does feel very badly, but this was my money and I told him its just between his parents and I. There is too much emotions involved with him and his parents so I told him I don't want him involved.

 

[Zigner]

They are telling him all of the same things. He does feel very badly, but this was my money and I told him its just between his parents and I. There is too much emotions involved with him and his parents so I told him I don't want him involved.

How is it "your money"?

 

[bigisland]

It is my money because I had it in a separate savings account under my name that I had saved before we got married. I know perhaps it could be considered "our' money since we are married in all, but he agrees that it is my money also.

 

[Zigner]

It is my money because I had it in a separate savings account under my name that I had saved before we got married. I know perhaps it could be considered "our' money since we are married in all, but he agrees that it is my money also.

Nope, sounds like it's "YOUR" money -

 

[Dandy Don]

Contact the county small claims court to find out what the maximum amount of financial damages is that can be claimed--the $25,000 you have will probably exceed the small claims limit, so most likely your suit will have to be filed in civil court. Your attorney can advise you how this is done.

After your case is heard and you receive an official judgment, that will be entered into court record and possibly also on the borrower's credit records. A debt collection attorney can then advise you on how to collect on this judgment in the future, when the borrower's either start another business or become employed, you can file papers to garnishee their wages or automatically deduct from their bank account.

DANDY DON IN OKLAHOMA ([email protected])

 

[abmyers]

I know hindsight is 20/20 but this is why you should never do business with family or friends. Business can get ugly, and this will likely sour your relationship.

I would recommend you get an attorney to assist you in this matter. Although it is possible to go at it pro per, it can get complex, and the procedures of a civil case are not simple if you have never done them.

Before you sue, talk to them, and explain yourself. Feel them out. Are they inclined to pay you back? Can you make arrangements? Are they near bankruptcy? BK is an issue for you, as a lawsuit may just push them to file, which means you lose your rights to the money. Learn all you can before you sue and talk to an attorney.

Oh, and tell your husband to get involved.....its his family