How do I collect money from a family member?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
How do I collect money from a family member?
My husband co-signed a car loan for his niece; he was the primary on the loan. She defaulted and he became responsible. We took out another loan to protect our credit and paid off the car with the promise she would pay us back. Meanwhile she sold the car, since the title was in her name, and gave us the money to put toward the loan. We have not received any other money since then. We have approached her but there is always an excuse why she can’t pay anything. Meanwhile we sit back and watch her spend money that could be put toward the loan. Is there anything we can do?
Asked on May 9, 2011 under Bankruptcy Law, Pennsylvania
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
To collect money from the neice, you would have to sue her: there is no other way to enforce her obligation to pay. You should be able to sue based on being cosignor of the original loan or based on her subsequent promise to repay the other loan (which could be enforced potentially as an oral agreement or under the thheory of promisorry estoppel). The question is whether it is worthwhile suing her; e.g. does she have the money to pay? If not, then even if you win, you lose--you spent the money on a lawsuit, but did not recover anything. That said, even if she doesn't or won't pay after you sue her and win, you may be able to garnish wages or bank account, force a sale of some of her possessions, or put a lien on any real property she owns.
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.