Legal Question in Credit and Debt Law in New York
My prior boss took advantage of my bad situation.
About 6 years ago, I was sharing an office with the Executive Director of the company that I am still employed with. She has since retired. I was having financial difficulties at the time because my then fiancee had lost his job and we had a young daughter to take care of. Creditors called me constantly at the job regardless of my protests and the Executive Director heard everything. Finally she gave me an offer that I felt I had to accept, or my job may be in jeopardy. The offer was that she would pay my debts to date so the creditors would stop calling the job and I could repay her instead. When I released my banking information to her, she paid my largest debts off entirely without my knowledge. She then had me sign an agreement for repayment at my desk in our office. Again, I felt intimidated and I was much younger and naiive. I started repaying her and she told me that the payments were insufficient because they were not making the principal over the interest she was charging me. Feeling defeated, I have not paid her since. Now it is 4 years later and she is still sending me coorespondence in the mail and on e-mail at my place of employment. My question is, would she be able to sue me for the debt and win?
1 Answer from Attorneys
Re: My prior boss took advantage of my bad situation.
While she could sue you, this would have little impact on your credit rating.
In addition, to collect, she would have to obtain a judgment and then take legal action for collection.
This is a difficult situation, but not critical. After 4 years, the case is closing in on a 'statute of limitations', and the debt may not be collectable after that at all.
Since the debt is represented by a signed writing, you are unlikely to have a defense to the action. But people rarely do in these situations. The best idea is to re-negotiate.
Good luck.
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