Legal Question in Credit and Debt Law in Washington

Business loan and personal gifts

In Oct 05 my ex-fiance, as majority shareholder for his business, signed a formal loan agreement with me to provide his company over $50k that would be repaid by March 31, 2006. He paid some but now with interest at least $52k is outstanding. I have hired a collection agency because I knew he would ignore a letter from a lawyer. He/his company is not paying. Now he says that his company will never repay the loan and that any money he sent here during our relationship must be repaid to him. At no time did I agree to or sign anything that said I would repay what he paid during our relationship. Can he sue me for personal gifts that he happened to pay from/through his company? What recourse other than court do I have to collect from his business the overdue fully-documented loan?


Asked on 9/06/07, 7:06 pm

1 Answer from Attorneys
Elizabeth Powell ELizabeth Powell PS Inc

Re: Business loan and personal gifts

Hire a lawyer to run a civil lawsuit to get a judgment against your ex so you can get your money back.

He's confusing your personal relationship with his business agreement and his promise to pay you back.

The laws on meretricious relationships (where you are not married but have common financial interests) are constantly changing. However, you are smart to keep your personal and your professional lives separate.

A gift is a gift and not a basis for a lawsuit. Did you sign a contract for the gift? No, of course not. Did he sign a contract promising to pay you back with interest? Yes.

Time to lawyer up. You are not saving yourself a dime by having a collector bluster him and they'll take a huge cut of your money. A lawyer will add on his or her fees to what your ex owes you and get the costs paid, too.

Elizabeth Powell

Read more
Answered on 9/09/07, 12:48 pm


Related Questions & Answers

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