VERBAL CONTRACT

[Anonymous]

Food for thought.

The golden question is If she doesn't have the money to pay, then when will she? 

Hiring an attorney, proceeding with lawsuit and hoping for a satisfactory judgment is incrementally risky and expensive.  And if you are successful in obtaining a judgment against her then in all probablity there will be additional expense to enforce collection.  Expect it to go on for years. 

It's probable that the cost of going through all of it will be multiple thousands of dollars, after all attorney billing rates are easily one to two hundred dollars an hour.  And it's doubtful that any attorney would accept the case on a contingency basis.  And given the oral nature of it along with the history and statutory issues, there is likely to be sufficient leg work for legal counsel.  For that matter, it wouldn't be surprising for attorney's to decline the case because of these things. 

IMO, it isn't worth tossing good money after bad.  Chalk it up to lesson learned.

[marty56]

Small claims court could get you 5k back and just cost you a filing fee.

The real issue here is that are you willing to forgive the debt to save your relationship with your sister and your niece.  It is possible that in the future your sister and or niece would do the right thing and pay you back but how would you feel if she wanted to pay you back but couldn't or at least not for several years.

Given the fact that you must have had some feelings for her to loan her the money, if I was in your situation I would have no choice but to forgive the debt.  Maybe she or her sister will do the right thing in the future but don't let it destroy your relationship with them or cause you stress.  Don't beat yourself up for doing this but don't forget that you did give her the money and part of you must have known that there was a possiblity you would not get the money back.

[Anonymous]

she gets money from gov't each month and that's the agreement.  150 a month

until she gets a job and then more.  It  is my retirement money.

[Anonymous]

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@Anonymous wrote:

she gets money from gov't each month and that's the agreement.  150 a month

until she gets a job and then more.  It  is my retirement money.

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Sorry, annie...I misread your original post to mean at least $150/mo, when she got a job.

I hope this is just a temporary lack of judgement on your niece's part, and that she'll realize she's indebted to you for more than just money, and that you need to be repaid.  That repayment can start by at least acknowledging her debt, and paying whatever she can towards it now, even if it's less than the $150/mo, you agreed to. 

If she could do that, it would probably give you some peace of mind, and go a long way towards showing you her intentions are honorable.

I hope it all works out for you.

[marty56]

Even if you could take her to small claims court, my guess she is judgement prooof until she gets a job.