11-26-2012 01:11 PM
Are there any avenues to collect on a personal loan from one person to another? Is there a way to file so this loan shows up on a credit report until it is paid off? Is there a time limit? Can I put a lien on the current place of living? Here is the situation: In 2004, a friend was going through financial troubles and asked for help. The person did not have a job at the time but did have a house which was inherited after the parents passed. I was told repeatedly that the money would be repaid after the house was sold. Without help, the place would have gone into foreclosure. The help money was to stay current on a HE loan the person had taken to cover expenses while taking care of parent who was ill. Time went by and the house was sold. In fact a second house was obtained (through family ties) and sold but no repayment was made. My worst fear is that in my good Samaritan effort, I have been taken and have no recourse to retrieve any of my money. I have receipts of payments to the HE lender, receipts of paying home heating bills and receipts/cancelled checks for money to live by while getting back on track. There was never an indication of dishonesty. I know this person well. Any feedback would help even if it is not what I want to hear. Thanks.
11-26-2012 01:15 PM
11-26-2012 03:34 PM
This is a perfect example of the purpose of Small Claims Court. You will normally need to make a demand for payment before you can file in court.
Each side will get to present their side of the problem to the court. Obviously, the more paperwork showing the loan, the better chance you have to win.
Do you have a signed contract?
If/When you win then there will be a requirement for him to pay. The Public Record will appear on his credit report. If he doesn't pay you, then you can request a debtors examination where the court will help you collect.
I cannot understand why you didn't include your claim on the escrow instructions when the house was sold. If he didn't include that, you could have probably filed and won by the time the house was sold.
SOL could have tolled on the debt depending on how the contract was written and when it first became delinquent. If there was no specified repayment, then it is hard for it to be delinquent starting SOL.
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