Ask Me Help Desk - Repayment of loan difficult as debtor is in a coma

Several years ago, I made a personal loan to a friend and waited patiently to be paid back. A few months ago, he was ready to pay half and then pay the rest soon, ($10,000 total) so I felt confident it was going to work out. A month after that agreement, however, he went into a coma from which he has not recovered, 5 months later. I have not been able to find out who may be handling his financial affairs. If I am able to find out, what are the steps to take to get the loan repaid? It dates from 2002 and 2003, so I have waited a long time and need the money very much. He may very well die, unfortunately, and perhaps soon. Is it better (I hate to put it this way, but I have to be practical) to wait until he dies and sue the estate? Thanks for your help.

Quote:

Originally Posted by emilyprince

Several years ago, I made a personal loan to a friend and waited patiently to be paid back. A few months ago, he was ready to pay half and then pay the rest soon, ($10,000 total) so I felt confident it was going to work out. A month after that agreement, however, he went into a coma from which he has not recovered, 5 months later. I have not been able to find out who may be handling his financial affairs. If I am able to find out, what are the steps to take to get the loan repaid? It dates from 2002 and 2003, so I have waited a long time and need the money very much. He may very well die, unfortunately, and perhaps soon. Is it better (I hate to put it this way, but I have to be practical) to wait until he dies and sue the estate? Thanks for your help.

What State?

Do you have it in writing? If not, I don't see that you have any hope of recovering your money.

The hard fact is - and I appreciate that this is not your situation - the number of false claims filed against estates is overwhelming and the Courts are not real understanding when alleged creditors come forward.

Hi, Judy, thank you for your answer. I am in Washington. The first part of the loan was $6,000 and he did sign a handwritten paper with the date and that amount designated as a loan. The paper states it is to be repaid with some percentage of interest "to be determined later" - which it never was. The second part was $3,000 and it was deposited directly into his bank account from my bank account, so I have no signed paper for that, just the bank statements. (The rest of it was credit card bills I paid on, that were items he had purchased with my permission, before he took over that part of his debt to me. So, it could have been worse, since the part which he paid off was over $5,000.) So, armed with original signed paper for the $6,000, bank statement for the $3,000, do you think I could get at least that much back? I know that the other bits would be much harder to show/prove. Also, the $6,000 was dated 2002 and the $3,000 was dated 2003. I have let this go, believing when his new business with Seattle government got off the ground, he would pay it all back. The business had its funding pulled suddenly and he succumbed to some brain disease right around that same time, and I was so saddened that I let it go these extra months. I can't do that any longer, and am just trying to get myself going in some direction to pursue the recovery of the funds. Thank you for your advice that may help me get going in the right direction. I just found out that a house he owns is going to be "bid" on in November, sold through the county, I guess. Is that an area in which I can register as a creditor? Or, as I asked originally, is it better to wait until he dies? Thanks again.

I will be blunt I really doubt you have a large chance, and if on what you do it would only be for the original 6000 dollars.

There are some issues, depending on the loan laws of your location, as to stating clearly when the debt was to be repaid, if there was no date, then they still "owe" you, but no grounds or legal right to call the loan payable now. He can "owe" you till he dies and you will get the money from the estate, and since there was no interest rate agreed to on the loan, I doubt that any interest can ever been allowed since none was listed.

The fact you paid there bills or transferred money to them, that could be anything, no proof it was not a gift, not you buying something or so on.

Also there is a issue of statue of limiitatoin, depending on the type of loan in your state also.

Loans should state what was borrowed, at what interest if any and when payments would start or when full payment was due

Quote:

Originally Posted by emilyprince

Hi, Judy, thank you for your answer. I am in Washington. The first part of the loan was $6,000 and he did sign a handwritten paper with the date and that amount designated as a loan. The paper states it is to be repaid with some percentage of interest "to be determined later" - which it never was. The second part was $3,000 and it was deposited directly into his bank account from my bank account, so I have no signed paper for that, just the bank statements. (The rest of it was credit card bills I paid on, that were items he had purchased with my permission, before he took over that part of his debt to me. So, it could have been worse, since the part which he paid off was over $5,000.) So, armed with original signed paper for the $6,000, bank statement for the $3,000, do you think I could get at least that much back? I know that the other bits would be much harder to show/prove. Also, the $6,000 was dated 2002 and the $3,000 was dated 2003. I have let this go, believing when his new business with Seattle government got off the ground, he would pay it all back. The business had its funding pulled suddenly and he succumbed to some brain disease right around that same time, and I was so saddened that I let it go these extra months. I can't do that any longer, and am just trying to get myself going in some direction to pursue the recovery of the funds. Thank you for your advice that may help me get going in the right direction. I just found out that a house he owns is going to be "bid" on in November, sold through the county, I guess. Is that an area in which I can register as a creditor? Or, as I asked originally, is it better to wait until he dies? Thanks again.

The Statute in Washington is 6 years on a written debt, 3 on an oral. If the debts are older than these two dates you have no legal grounds on which to collect.

The Statute runs from the last ACTIVITY on the account which you can prove - which would be the last payment or, if there were no payments, on the date of the debt. Are they still within the Statute?

If they are you don't "register" as a creditor - you get a Judgment (and you are beyond the Small Claims Court jurisdiction if the $6,000 and $3,000 are unpaid) against him and attempt to collect it from his assets.

If he dies you would have a claim against his estate - if there is any estate left and if you are within Statute and can prove the transactions. Certainly you can prove the written note. I see no way to prove the other loans as loans and not gifts. I think the same is true with any "little bits" of money.

Obviously your relationship will be called into question - did money go in both directions; why was there no attempt to collect in the past several years.

Does this person not have relatives? Is no one sitting by his bedside? I can't imagine it would be that difficult to find out who is handling things for him?

Aside from that, do you have reason to believe there is money or assets with which to pay the debt to you? It sounds like you'd have a reasonable shot at getting a judgement for at least part of the debt, but the judgement's not worth any more than the paper it's printed on if there's nothing to collect. Does he own property?

Find out the local limit for small claims court in your area (where the loan was originated, is usually where you'd file). Ours just went from $5000 to $10000. Then you might as well ask them what would happen if you're filing suit against someone who is in a coma. What if no one has power of attorney?

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Originally Posted by rockinmommy

Does this person not have relatives? Is no one sitting by his bedside? I can't imagine it would be that difficult to find out who is handling things for him?

Aside from that, do you have reason to believe there is money or assets with which to pay the debt to you? It sounds like you'd have a reasonable shot at getting a judgement for at least part of the debt, but the judgement's not worth any more than the paper it's printed on if there's nothing to collect. Does he own property?

Find out the local limit for small claims court in your area (where the loan was originated, is usually where you'd file). Ours just went from $5000 to $10000. Then you might as well ask them what would happen if you're filing suit against someone who is in a coma. What if no one has power of attorney?

In NYS you cannot do this - the Court assumes the incompetent person cannot present a compelling defense because that person cannot participate in the proceeding and, presumably, the person "appointed" to handle the affairs is not thoroughly knowledgeable.

You CAN file a claim against an estate if you have valid proof and are within the statute.

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Originally Posted by JudyKayTee

In NYS you cannot do this - the Court assumes the incompetent person cannot present a compelling defense because that person cannot participate in the proceeding and, presumably, the person "appointed" to handle the affairs is not thoroughly knowledgeable..

Well, that sounds reasonable. That's why I was saying to call the court and ask them if you can bring suit against such a person. (incompetant, comatose, etc.)

It sounds like she may just be out of luck until he actually passes. Then it's "get in line" and hope it doesn't run dry before you get your turn.