Legal Question in Civil Litigation in California

Ex Friend trying to Collect Money
I have a friend that states I need to pay friend back money that friend loaned me over 7 years ago, but from what I remember, there was no set agreement that it was truly a loan and it was small amounts over a few years or so. The actual amount is less than what friend is claiming. Now friend states giving me 30 days to repay it in full knowing my financial situation is unable to do so. That time frame is up and now stating will make IRS get the money from me. Is that true and how does that work? What legal matters can be taken?

Asked on 11/16/08, 11:27 pm

3 Answers from Attorneys

Edward Hoffman Law Offices of Edward A. Hoffman

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Re: Ex Friend trying to Collect Money

The IRS is not a debt-collection agency and won't help anyone recover money they claim someone else owes them. Your friend can sue you if he wants, but he will have to prove that he made the loan, as well as what its terms were and that you breached those terms.

If he does sue, you may well have a defense based upon the statute of limitations. (Whether you do will depend upon what he claims your obligations were, especially when you were supposed to repay the money.) You will probably have other arguments available, though I can't say how strong or weak they may be.

Good luck.

Answered on 11/17/08, 1:34 am

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Terry A. Nelson Nelson & Lawless

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Re: Ex Friend trying to Collect Money

You have a moral obligation to pay any money owed, but after four years the Statute of Limitations prevent him from filing suit. IRS has nothing to do with this, and he is lying.

Answered on 11/17/08, 1:28 pm

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