unpaid loan

[strummer]

Nearly three years ago, December 2006, I was loaned $2000 dollars by a man that I was associated with at a charity group that he ran where I was a volunteer. I left the group September 07 after finding out about the very deceitful pratices of the Board of Directors of whom I was a member. I made an offer to the man of a repayment of $100 per month. I was able to pay $900 over the following year or so but have become disabled and am currently behind with all my bills including the loan payments. He seemed okay with this when we spoke in July of this year but last weekend sent me an email demanding full payment or small claims court. I responded that I intended to repay him when I could and explained my current circumstances. His reply was that he didn't care. I have never refused to pay him back, but I am still trying to arrange assistance for surgery and can barely walk let alone work [I'm a roofer]. These days I live on the subsidy and help from family, my wife works but we are always behind with our bills. How should I proceed? If I had the money I would pay it.

 

[jharris352]

He may sue you. Follow the process and he will end up with a judgment. He really cant get much on garnishment if all you are getting is disability. He can't touch your wife's things at all.

 

[strummer]

Thanks...the point is I'm self employed and not eligible for disability. I thought to send him what I can and go from there.

 

[jharris352]

Being self employed makes it awfully hard to garnish your earnings.

 

[mightymoose]

If nothing else, send him a minimal amount... maybe $10 per month. That way he can't say that he isn't being paid and it shows that you acknowledge the debt. He will likely only get a judgment if you are not paying at all.
Make sure you get receipts or save the checks.

 

[Michael Wechsler]

The bottom line - if you can't pay a loan, that is not a defense to not paying the loan. Best way to appreciate this - if you gave $2000 to someone else and then they told you they just can't and won't pay it back, and you needed $500 to pay the rent or be evicted... how would you feel? You know. You'd be saying "I'm sorry but I can't be out the money I trusted you to pay back and I NEED the money to pay the rent... come up with it or see me in court!"

 

[jharris352]

To add to what lawprofessor is saying: I know you want to give this trailer to your son, but what you are saying is that you know you have the asset to pay the debt but you just don't want to because you want to give the money/equity to your son. That isn't going to fly.