Legal Question in Civil Litigation in California
Loan debt unpaid
In March 2002 my aunt asked that my brother to borrow a $10,000 bank loan for her and she will repay back with a CD that will mature in October of the same year. He agreed upon that condition, (that she repays when her CD matures). After they both verbally agreed, he went to the bank and signed out a loan for $10,000 and made the check into her name. She was not on the loan because she had bad credit. Since their agreement he attemted several times to recover his money and has not been successful. She has been making the minimum payments but is reluctant to make the pay and is normally late. He also went to another city in front of many witnesses such as her relatives and ours and made verbal agreements to everyone present that she will repay; still no payment. We are getting fustrated and tired of the lies and deceit, and would like to know our legal options. Please help us find a way to recover the money because there may be a chance she will leave the country.
5 Answers from Attorneys
Re: Loan debt unpaid
You may file a lawsuit based on an oral promise. The oral contract will be considered binding. You will probably need the help of an attorney if the amount outstanding is above $5,000.00. Otherwise, you can file in small claims court for up to 5k without using an attorney. If you are in the area and require further assistance please give me a call.
Re: Loan debt unpaid
Your best be would be to sue her. No other way from what you have described.
Re: Loan debt unpaid
Obviously you can sue her, however, that is probably not your real problem. If she was willing to acknowledge the debt in front of so many others, it is possible that she would be willing to executed a Stipulation for Judgment, a document which you could hold, unless she did not live up to a repayment program. It may be that she will be interested in avoiding a judgment against her, or even that she would voluntarily honor a judgment. If not, you are left to the chancey attempt to forcibly collect a judgment, which, her being a member of the family,you may not even wish to do.
Re: Loan debt unpaid
You clearly have a valid oral contract, but your concern has to be, how does your aunt pay back $10,000 if she barely makes the payments on the loan, and she has bad credit? Is she obligated under your contract to make the payments any faster(or in bigger amounts) then she has been? However this comes out, please be wise in the future. That's the best advice I can give you.
Re: Loan debt unpaid
It appears that there is a valid oral contract between your aunt and your brother. You best course of action would be to take legal action if your aunt still refuses to pay. However, there are always practical issues to recovery, some of which you already realize (such as you aunt leaving the country and taking all her assets with her). However, we may be able to assist you with your legal issues if your aunt resides in California.
This is general information that I hope has been helpful to you. However, you should always obtain legal counsel familiar with your specific circumstances. If we can assist you in the future, please contact us at www.unalaw.com and somebody will assist you as soon as possible.
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