If my car recently was totaled when I let my roommate borrow, how can I legally set-up a repayment plan for her to reimburse me?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If my car recently was totaled when I let my roommate borrow, how can I legally set-up a repayment plan for her to reimburse me?
I know that when it comes to insurance, I am essentially at fault and will suffer the consequences. However, my roommate has agreed to pay me back for half the cost of the car but wants to do it over time. I wanted to find out if there is some way to make a legally binding contract over a personal financial/payment plan agreement?
Asked on July 12, 2015 under Bankruptcy Law, Virginia
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 9 years ago | Contributor
Yes, and it's actually easy to do: simply write up the terms of the agreement--how much is owed and the payment plan--and include in the write up that "in exchange for [your name] giving up your right to sue [friend's name], the parties hearby agree that [friend] will pay [you] as indicated in this agreement."
If the friend pays, you can't sue him. If he fails to make the payments, you can then sue for the costs/damages he caused.
The agreement should be signed and dated by both of you. Make sure you both keep copies.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.