I know a person who got a loan from a family member and due to circumstances beyond his control, he hasn't been able to pay thus far. His family member is threatening to get an attorney and sue as well as get a collection agency to collect. Will this hold up on court being that there were no real legal documents involved?
2007-01-09 08:47:46 · 17 answers · asked by Suu S 2 in Politics & Government ➔ Law & Ethics
Yes, and would be even without the notarized paper - although possibly harder to collect.
However, while the recipient can sue for the loan amount, it is grossly unlikely that they would "sell" the loan to a collection agency. Agencies accept tons of loans from established companies with business agreements, and often own the loan by paying the referrer a set amount per dollar.
2007-01-09 08:56:20 · answer #1 · answered by Colin M 3 · 0⤊ 0⤋
A contract is a legal and binding document and being that it was notarized makes it apparent the individual knew what he/she was doing. The family member does have a case against your friend but not many attorneys will take a case involving a small amount of money or 2 family members fueding about money because it is not worth the headache or the settlement.
As far as a collection agency, that is a joke because the collection agency will only pay a small percentage of the amount for the contract and any money collected will be the property of the collection agency not the family member who loaned the money.
Your friend needs to start making some sort of restitution regardless of the situation. One more reason why you should never borrow or loan money to a family member unless you can afford to go with out the money.
2007-01-09 10:04:18 · answer #2 · answered by Lance D 3 · 0⤊ 0⤋
It depends on what the paper says and if the person really got the loan.
If the paper state that person A loaned person B X dollars and B says he'll pay it back, then its a legal document and as long as person B received the money then it should hold up in court.
Now the the paper sated the same thing except person A was charging a large amount of interest then it might not. So it depends on what is on the paper.
The best thing is for the person to make some kind of arrangement, even if its only a token amount, and start paying back the loan. Pay with check or money order and keep track.
Otherwise the attorneys will make out good, and everyone else will lose.
2007-01-09 09:04:23 · answer #3 · answered by Richard 7 · 0⤊ 0⤋
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2016-09-28 08:34:31 · answer #4 · answered by Fredrick 3 · 0⤊ 0⤋
Having something notorized is a great thing to do when dealing with important paperwork. But in the case of a contract such as this, it's not even necessary. If someone has signed a piece of paper that specifies a specific amount of money to be paid back, he/she is agreeing to pay it back. It's a binding contract that will stick in court for sure. If you watch the court shows you'll see what I say is true.
2007-01-09 09:11:15 · answer #5 · answered by Anna Hennings 5 · 0⤊ 0⤋
The document will stand up in court. It does not need to be notarized, and it only needs to be signed by the person who owes the money, not the recipient.
2007-01-09 12:56:35 · answer #6 · answered by Andy 2 · 0⤊ 0⤋
Any document that denotes the terms of the agreement and is signed and dated by both parties is a legal document in the eyes of the court. It will hold up if it is writing.
2007-01-09 08:52:14 · answer #7 · answered by erictompkins1970 2 · 2⤊ 0⤋
You bet.
Notarized indicates that there was a third party witness -- this person was not coerced into signing and did so willingly. Time to pay up.
2007-01-09 08:59:21 · answer #8 · answered by Goose&Tonic 6 · 0⤊ 0⤋
If the document is notarized then it is suppose to hold up in court.
2007-01-09 08:55:50 · answer #9 · answered by JayLoe 1 · 0⤊ 0⤋
yes it can a signed paper act as an agreed contract making it a legal document
2007-01-09 09:01:18 · answer #10 · answered by kieranhoy@btinternet.com 1 · 0⤊ 0⤋