Legal Question in Credit and Debt Law in Michigan

Old loan from family member

Ten years ago a relative loaned me $2700.00 for a car. Nothing was signed. Repaid $2000.00. I Had financial problems the past years. When topic has been discussed relative said ''he is not worried about it and for me not to worry anymore''.

Relative had stroke, is elderly, and has forgotten. States it is not true. And wants full payment in 30 days (only 10 left) or he will sue.

What am I responsible for?


Asked on 2/02/05, 2:39 pm

1 Answer from Attorneys
Jesse Sweeney Sweeney Law Offices, P.L.L.C.

Re: Old loan from family member

Without written evidence, it may be hard for him to prove, but as a matter of moral and ethical obligation, you owe him the $700.00. As a matter of legal obligation, you might be found to owe him the money if it was not found he forgave this debt or it was not deemed to be a gift. You could discharge this debt by filing bankruptcy. But if that's all you owe to any entity or person, it would not be worth the time or money.

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Answered on 2/02/05, 3:04 pm


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