What's a suitable punishment for not paying back $16,000?
I lent my friend money to maintain his failing business. He made me a silent partner, even though he never allowed me to see his books. It's been years since his business folded and has yet to pay me a dime. I keep reminding him from time to time, but always keeps making excuses. I even suggested a formal payment plan and he verbally agreed to pay me back every month. No, I never got this loan in writing. However, I may be able to retrieve old checks I wrote out to him.
He's nervous that I'll come out and reveal to all of our mutual friends and family that he's really a thief and a liar. He is so insecure about his image that he's afraid of being enormously embarrassed of this mistake. What should I do, short of pummeling him?
Answers:
If you can get note from him stating that he refuses to pay you might be able to write some of the loss off your income tax.
$16K isn't much money anymore, but don't loan him another dime.
Pummeling him might be the most effective. <kidding!>
But seriously, if you don't have it in writing, you're pretty much screwed. Old checks might work and they might not, especially if this guy clearly doesn't have the money and/or is unwilling to pay you back.
You can file a lawsuit to get the loan back, but even assuming that a judge buys the no-contract-and-old-checks part and you get a judgment, it doesn't look like you'll get anything out of this guy. You could also call the IRS about those books that no one has seen, but that might not work, since you're the silent partner, you might be liable as well.
I'd say to put him on blast for being a loser and cut your losses. And also never loan money to anyone without a signed promissory note and payment plan.
First I would get the old checks, then I would tell him that unless he agrees to and signs an agreement with a payment plan I'm taking him to court. Then it all becomes public. I would explain to him that since he isn't concerned with your finances which he has damaged that you see no reason to concern yourself with protecting his image with your other friends.
Please forget the corporal punishment, even as a joke.
While suing him may give you moral satisfaction, you have small chance of getting any money back unless you know of money assets he has that your attorney could attach. In fact, it will cost you attorney's fees to sue him.
If your checks state that it was a loan, you have a chance of winning. but again, so what.
As for outing him to family and friends, that's a two-edged sword as it demeans you when you speak poorly of others.
I'd go after him for the maximum that you can in small claims
court - he most likely will default and then you'll have a legal debt.
You might be able to find a collection agency willing to buy the debt for 50% but even that is not too likely.
You can sue him pro se in superior court which would only cost you the filing fees if you do the paper work - you can find enough samples on the internet - i did.
Once you have your legal debt, (which if you calculate with interest, will come to well over the original amount - what you can do if it's a legal debt is write it off on your taxes.
The answers post by the user, for information only, FreeLawAnswer.com does not guarantee the right.
Answer question:
More Law Questions and Answers: