Legal Question in Credit and Debt Law in Michigan

Bad Debt Owed

I loaned my brother and sister-in-law $5,000. A little over a month of the loan being made my brother was killed in an auto accident. The check was made out to both parties. It was indorsed by both and cashed. When I went back to the Funeral, she told me she would pay the loan back as soon as the insurance came through. I told her to take her time until she could think more clearly and see what her finances were and we would work something out. Now she is saying she does not think she owes this debt.I have tried sending letters numerous times with no response, even having them certified and she refuses them. Finally she did send two payments of $100 each in Jan. & Feb.of 2003. Then to this date no payments. I again started writing request for payment, no answer. Can you help me with this problem. She has since re-married and can certainly afford to pay this back. She knew it was a loan to be repaid.

Thank You

Shirley


Asked on 5/23/03, 12:07 am

1 Answer from Attorneys
Sheldon G. Bardach Law Offices of Sheldon G. Bardach

Re: Bad Debt Owed

Shirley:

There is no easy solution to your problem. You either have to work something out with her, and that is my recommendation, or sue her to recover the amount of the loan. Try harder to work it out. She obviously acknowledged the debt. That is why I don't recommend mediation. It seems like a simple question of getting her willingness to pay it. Maybe in mediation a work out could be more easily be arranged.

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Answered on 5/23/03, 10:43 am


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