Ask Me Help Desk - Received summons for alleged personal loan

Good morning to all.

I have recently received a court summons and am being sued for the amount of 1200, plus court cost, and attorney fees. I have yet to file an answer, but will do so.

The 1200 I am being sued for, was money that was loaned to my mother in october/07, she was supposed to pay this back by april/08.

The money was given following a conversation with a co-worker of mine, by that co-worker. The conversation consisted of my mothers difficulties, she was to be evicted for failure to pay rent, if payment was not received soon. The money was handed to me, to give to her with the promise of it being back by april/08.

On dec 14, 07, my mother was admitted to the hospital with a evidence of a stroke. My co-worker and I, had another conversation, on dec18/07, where I brought up his money and expected re-payment. He mis-understood me, and blew up, where I had to have removed from my work space. Christmas break followed this argument. Now it's jan/08, we have returned to work, and he is still angry and showing hostility to me. I write a letter, promising that I will make sure he is paid back, regardless of my mother's current medical issues. She has just been moved to a rehabilataion home.

April comes and he has not received his money. My mother was dx'd with dementia following her stroke, and is confined to nursing home, with no ability to re-pay said loan.

The summons states that I borrowed the money from him, and have refused to pay it back in time frame given. I did not, my mother did. I received no gain from said loan. It was mother's problem to pay back, not mine. She has no income and is unable to pay the loan back.

I'm wondering if by writing the letter that was trying to diffuse a situation, that I assumed the debt with the promise of my making sure he was paid back. When that promise was made, I was not aware of the extent of my mother medical issue's, and assumed she would be able re-turn to work,and re-pay the debt owed to my co-worker.

The money was not given to me borrow, it was given to me, with full knowledge that the funds were going to to my mother, and she was to pay it back. Beyond my word, there's no proof of this. What are my chances of wining this argument?

Thank-you for your time, and any help you can give me. I can not afford a lawyer, and will have to defend myself against his complaint.

When the loan was made, who negotiated the terms with the co-worker? You or your mom?

The letter you wrote - judging by what you wrote here, sounds like you are assuming responsibility for the loan.

I know you can not afford a lawyer, but most offer free consultations - you may want to contact one just to see what your options are.

That amount of money, is certainly low enough for a small claims case, did this person really hire an attorney and file in civil court?

If so, I believe that in writing that letter, you guaranteed repayment. If that were presented as evidence, I see no way for you to retract that guarantee, made in writing.

For $1200, I would try to offer to pay, prior to going to court, without paying the attorney fees, if there are any. If they refuse, all you can do is show up and defend yourself, or, pay an attorney, which would probably cost you more than the full amount of the loan.

Quote:

Originally Posted by onceuponakiss4u

Good morning to all.

I have recently received a court summons and am being sued for the amount of 1200, plus court cost, and attorney fees. I have yet to file an answer, but will do so.

The 1200 i am being sued for, was money that was loaned to my mother in october/07, she was supposed to pay this back by april/08.

The money was given following a conversation with a co-worker of mine, by that co-worker. The conversation consisted of my mothers difficulties, she was to be evicted for failure to pay rent, if payment was not received soon. The money was handed to me, to give to her with the promise of it being back by april/08.

on dec 14, 07, my mother was admitted to the hospital with a evidence of a stroke. My co-worker and i, had another conversation, on dec18/07, where i brought up his money and expected re-payment. He mis-understood me, and blew up, where i had to have removed from my work space. Christmas break followed this argument. Now it's jan/08, we have returned to work, and he is still angry and showing hostility to me. i write a letter, promising that i will make sure he is paid back, regardless of my mother's current medical issues. She has just been moved to a rehabilataion home.

April comes and he has not received his money. My mother was dx'd with dementia following her stroke, and is confined to nursing home, with no ability to re-pay said loan.

The summons states that i borrowed the money from him, and have refused to pay it back in time frame given. i did not, my mother did. i received no gain from said loan. It was mother's problem to pay back, not mine. she has no income and is unable to pay the loan back.

I'm wondering if by writing the letter that was trying to diffuse a situation, that i assumed the debt with the promise of my making sure he was paid back. When that promise was made, i was not aware of the extent of my mother medical issue's, and assumed she would be able re-turn to work,and re-pay the debt owed to my co-worker.

The money was not given to me borrow, it was given to me, with full knowledge that the funds were going to to my mother, and she was to pay it back. Beyond my word, there's no proof of this. what are my chances of wining this argument?

thank-you for your time, and any help you can give me. I can not afford a lawyer, and will have to defend myself against his complaint.

I'm parroting what everyone else has said but, yes, I think you ratified - and accepted - the debt by your letter.

Wonder why this isn't a Small Claims matter? Or is it?

Nowwhat asks:When the loan was made, who negotiated the terms with the co-worker? You or your mom?

When loan was made money changed hands , with him saying give this to your mother, just have her pay it back by aril/08

Prognr writes: That amount of money, is certainly low enough for a small claims case, did this person really hire an attorney and file in civil court?

Yes, this a civil matter, he has friend who is an attorney, I've known this man for several years. And he used him for a dispute regrading a storage unit in his condo

As far a paying this man back for something that I don't even owe him. I do not have that cash avaiable to me at this time, my mother's illness has drained my reserves, while we wait for approval of her claim. I am paying her storage for her personal items, her cable at the nursing home, and insurance on a truck that has lien on it, that is covered by this. Insurance. Plus all her needs in the home, shampoo, clothes, snack etc...
I am only child, I have two young children myself, a large home loan, etc... all this burden goes on me.

The letter that I wrote, I feel was coerced from me due to our agruement. I feel the letter was a gratuitous promise with no consideration involved and if he wants to somebody by all means sue her to collect her money. My mother has written a note claiming the debt is hers, and not mine, which I will include with my answer . She has short term memory loss and a couple of other issues, that cause her dementia. But is able to remember things prior her stroke in dec/07. She would not be able to be witness, because of her short term memory loss, I don't think she would stand as compatent witness.

I just don't want to have this man back, for something that I didn't borrow. If I borrowed the money fine, but I didn't. Getting back to the letter, it does in fact bring up the fact he was removed, and how he was acting prior removal. I write that the letter is an ice breaker, to get him to talk reasonable to me. Sorry there was a misunderstanding on something I said, I'll make sure you get your money by april/08, and so forth.
And that was about it...

This so unfair, that not only I've lost my mom essentially, but have to pay her debts to when I can barely afford my own bills.

As far offers to pay him back again I do not that amount avaiable to me, and don't think as this point of time, that he would be un- willing to accepts payments, by asking about re-payment, I accept the debt. If wins in court, then I will be ordered to pay him, where I will ask for a motion for installment payments.

Again any sage advice that can be offered would be most grateful

I think the only thing you can do is go to Court, present these same arguments and any documentation you have and see what happens.

The creditor does not have to accept installment payments if that is not his choice nor can the Court force him to accept them. He can use any legal means possible to collect; however, let's just hope he'll be agreeable to payments or that you'll win outright!

Quote:

Originally Posted by onceuponakiss4u

The money was given following a conversation with a co-worker of mine, by that co-worker. The conversation consisted of my mothers difficulties, she was to be evicted for failure to pay rent, if payment was not received soon. The money was handed to me, to give to her with the promise of it being back by april/08.

The money was handed to YOU. YOU have the relationship with this co-worker. These facts will, In my opinion, lead a judge to making you responsible for the loan.

I suspect he felt he was doing this for you, not for your mother. So he considers that he loand you the money. Since there was no promissory note or other loan agreement you don't have much to stand on. The letter just adds fuel to the fire, but I don't think its necessary to make you the responsible party.

I suggest you negotiate a settlement.

Quote:

Originally Posted by ScottGem

The money was handed to YOU. YOU have the relationship with this co-worker. These facts will, IMHO, lead a judge to making you responsible for the loan.

I suspect he felt he was doing this for you, not for your mother. So he considers that he loand you the money. Since there was no promissory note or other loan agreement you don't have much to stand on. The letter just adds fuel to the fire, but I don't think its necessary to make you the responsible party.

I suggest you negotiate a settlement.

How does one negotiate settlement, when a claim is already been filed? I don't think he want's the money in installments, I think he wants it all up front. By the way. I have no checking account or saving account, they are all in my husbands name.

If you can't negotiate a settlement, then he will, In my opinion, get a judgement against you, which he can use to garnish your wages or attach any assets you have. If you feel you are judgement proof, then roll the dice.

I will agree, if I had to give my opinion with what was said here, the person has a good law suit and I would give them a great chance to win.
One reason to attempt and make a settlement would be if and when you go to court, you can present proof you did attempt to make payment arrangements and they refused. The judge may force or allow a payment plan to be allowed, but if not meet then the judgement would be in effect.