Can I sue her?

[BreJean]

Hi,

I'm from Michigan, and I made a mistake of loaning a friend $15,000. She signed a promissory note and agreed to pay a minimum of $300. per month and agreed to pay the loan off in 3 years.

Verbally she agreed to pay me at least $200. per pay(she gets paid every 2 weeks) but told me it should be much more, because she was going to be working so much over time, she also agreed to give me part of her income tax, and she told me if she didn't have the money one pay period she would call and let me know.

She has not kept any of the verbal agreement, she has never given me more then $200. per pay, she didn't give me anything from her income tax, and she never calls when she doesn't have the money, I always have to track her down.

As far as the promissory note goes, most months I get the minimum of $300. But there have been months when I didn't. And at the rate she's going, it's no way the loan will be paid off in 3 years.

I want to know if I can sue her? I resent the fact that she has not kept any of the verbal agreement and that she just pays me whenever she feels like it.

I was hoping if I could sue her and win a judgment, then I could garnish her wages and be guaranteed to receive a fix amount each time she gets paid, instead of the hit and miss stuff that she's doing now.

Also she has been stating that she is having financial problems and is talking about filing bankruptcy (even though she just when on a cruise) How will this affect my case, if I can sue her? And how will it affect me garnishing her wages?

Thank You!!

 

[I AM ALWAYS LIABLE]

Hi,

I'm from Michigan, and I made a mistake of loaning a friend $15,000. She signed a promissory note and agreed to pay a minimum of $300. per month and agreed to pay the loan off in 3 years.

Verbally she agreed to pay me at least $200. per pay(she gets paid every 2 weeks) but told me it should be much more, because she was going to be working so much over time, she also agreed to give me part of her income tax, and she told me if she didn't have the money one pay period she would call and let me know.

She has not kept any of the verbal agreement, she has never given me more then $200. per pay, she didn't give me anything from her income tax, and she never calls when she doesn't have the money, I always have to track her down.

As far as the promissory note goes, most months I get the minimum of $300. But there have been months when I didn't. And at the rate she's going, it's no way the loan will be paid off in 3 years.

I want to know if I can sue her? I resent the fact that she has not kept any of the verbal agreement and that she just pays me whenever she feels like it.

I was hoping if I could sue her and win a judgment, then I could garnish her wages and be guaranteed to receive a fix amount each time she gets paid, instead of the hit and miss stuff that she's doing now.

Also she has been stating that she is having financial problems and is talking about filing bankruptcy (even though she just when on a cruise) How will this affect my case, if I can sue her? And how will it affect me garnishing her wages?

Thank You!!

My response:

First of all, you can forget about the verbal promises. Verbal promises concerning such an amount of money are in violation of the Statute of Frauds.

Sure, you can sue her on the written promissory note. In Michigan, you have 6 years from the last payment date within which to file a lawsuit in a court of competent jurisdiction.

And yes, depending upon which Chapter of Bankruptcy she files for, you could very well lose the entire amount, or only get pennies on the dollar.

Lastly, by my calculation, she couldn't possibly pay the entire debt to you, under the terms of the note, at $300.00 per month for 3 years. Her monthy payments, exclusive of interest, would need to be $416.66 per month. Was there a "balloon payment" provision in your note to make up for this shortfall ?

IAAL

[Edited by I AM ALWAYS LIABLE on 04-12-2001 at 04:52 PM]

 

[BreJean]

Michigan
Thank You for responsing to my question. No there is no "ballon payment" provision. $300. was suppose to be the minimum payment she assured me that she would be paying more, I just added $300. to make sure I didn't get less and 3years because I didn't want it to take longer then that. I didn't even do the math. Right now she's paying $400.00 per month although twice I only got $200.00 per month. For the most part she is following the provisions of the promissory note. But I was thinking about suing because I am upset that she has not kept her word on the verbal part of the agreement. Can I still sue even though she is following the provisions of the promissory note?

Thanks Again

 

[JETX]

If she is in general compliance with the written agreement, you have no basis for a lawsuit. As IAAL said, FORGET ANY VERBAL AGREEMENT!!! It doesn't exist, is unenforceable and, you attempting to force it will probably cost you everything (when she files for bankruptcy).

Quit being so greedy, accept the $300 per month for as long as it is being voluntarily paid!! Even if $400 one month and only $200 the next, you ARE getting paid! Accept it, keep accurate records, give her a receipt for each payment SHOWING THE OUTSTANDING BALANCE of the loan. You might need to litigate later, so keep your records.

Finally, take what you are getting in compliance and be happy. Any attempts by you to try to force verbal agreements or higher payments can only cost you money when she tells you to sue her and stops paying entirely or she files for bankruptcy. And since you have a three year provision, you can considering suing at that time when the outstanding balance would not be such a loss!!

 

[BreJean]

How am I being greedy? I loaned this person $15,000. interest free, I just want my money back. I understand the verbal agreement means nothing in a court of law, I just didn't know until after I loaned her the money, that her word means nothing either. But I guess I need to start looking on the bright side, it could be worst, at least she is paying me something, I'll just take your suggestion and take whatever she gives me over the next 3 years and then take it from there.

Thanks