Legal Question in Credit and Debt Law in California

Unpaid loan
We paid the rent for a family ($1200)
who was out of work. He was to
work off the debt by painting and
other jobs around our house. Two
years have gone by. No work was
done. I sent them a certified letter
which said now that you are working
we would be willing to accept $100. a
month until paid in full. Their
response was ''It was a Christian
GIFT'' and they have no intentions
of any payment. What would you
do????

Asked on 11/04/08, 2:17 pm

2 Answers from Attorneys

David Gibbs The Gibbs Law Firm, APC

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Re: Unpaid loan

First, I would determine if you have an enforceable loan, or is it going to appear to a judge that you did in fact "gift" the money to them out of charity. Do you have a signed promissory note? If not, do you have any witnesses who can testify unequivocally that the agreement was to have the money repaid? Is that witness someone who would appear to be without bias (preferrably not your wife or family members). If he refuses to repay you, and you feel comfortable that you can convince a judge that it was a loan, and not a gift, file a small claims action against him for the money. Good luck.

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Answered on 11/04/08, 2:29 pm

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