Legal Question in Credit and Debt Law in Georgia

I have loaned my bother-in-law ~ $16K to help with his divorce costs. He has promised to repay me upon the death of his father (elderly, in poor health) from his inheritance. Should I not have him execute a Promissory Note? (My wife strongly objects to this, BTW.) I had to withdraw the funds from my 401K, and therefore had to pay taxes on it. (I am retired.) Note: I was uncertain which category this fell into, so I selected "Collections".


Asked on 4/04/11, 11:48 am

2 Answers from Attorneys
Rachel Hunter

I do not want to be the cause of your marital breakup, but your wife is wrong on this. You should absolutely get your brother-in-law to sign a promissory note. I do not know what state your brother-in-law is in, but specify that the note will be governed by GA law.

You can get sample promissory notes at www.ilrg.com's forms archive or you can pay a lawyer to draft one for you.

If the loan is to be repaid at one time, specify a due date. If the note is to be repaid in installments, specify a reasonable interest rate. And include the fees from your IRA in the interest. You should not have to be penalized this.

Read more
Answered on 4/04/11, 2:24 pm
Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

Your wife is dead wrong on this.

You definitely need to have a note drawn (and should have done this before loaning the money). Because of the amount, an attorney should draft it.

Read more
Answered on 4/04/11, 2:42 pm


Related Questions & Answers

More Credit, Debt and Collections Law questions and answers in Georgia