Legal Question in Credit and Debt Law in California
Repayment of debt
1992:I was 19 and loaned my father $10,000 from my college savings; he promised to pay me back within one year at 10% interest, compounded daily. By 1995 he paid me back $6,000 but has made no paymenst since. I have a hand written note with his signature promising to repay the loan at 10% interest compounded daily.
He is in the process of selling another real estate property; he claims he cannot pay me any money from that sales as he would then suffer a 40% tax penalty. He also claims he cannot afford monthy payments to me.
This is a delicate issue but I want the money owed me as I am now paying off my college loans at 6%. What are my legal recourses?
Thank you for your response.
1 Answer from Attorneys
Re: Repayment of debt
Being a father myself, I can unequivocally state that your father is taking advantage of you. This is mostly a family problem. He doesn't seem to know or care that it will lead to estrangement and hostility from you, which I assume it will. Your possible recourse, are few, in addition to suing him for the debt. You could suggest that he agree to mediation or arbitration of the obligation repayment. That would keep the issue out of the court system, but mediation would work toward getting you an agreement for repayment, and arbitration would get you an award you could convert into a judgment, for enforcement. Take your choice.
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