I loaned an individual 20k for the purpose of buying and selling and item. The note that he signed for me only stated that I was loaning him money and that he had a certain amount of time to pay me back and how much to pay back. It did not state the purpose. Only a promisory note. He used the money for personal things. He did this to me and a friend. Can we file criminal charges?
2007-02-12 18:36:40 · 9 answers · asked by sidreisner1@sbcglobal.net 1 in Politics & Government ➔ Law & Ethics
I am not sure. The fact that it is over $500.00 would make it a felony in most states. You may have to file civilly, the police can tell you better. I would be upset as well, I hope it works out for you.
2007-02-12 19:10:19 · answer #1 · answered by Julia B 6 · 0⤊ 0⤋
No. Prior to loaning the money, even though he is/was your friend, at the time, you had the burden of meeting at least a minimum Due Diligence of determing whether or not the friend had a the financial ability to pay back the amount he was loaned by getting him to sign releases to get a copy of his credit report and employment verification to find out what he makes.
If you did not spell out in the Contract/Note that any fees, cost, and expenses to collect the loan should he not meet the payment obligations made per the contract, he will likely not be held liable for those either and you could end up spending more in attorney fees, Court Costs and expenses than the loan is worth, especially if the person has little to not net worth or gainful employment, which is probably the reason he turned to you instead of a bank or other lender because he did not meet their criteria for a loan and/or credit account.
If he used the money for personal expense, there is no collateral and your loan is considered unsecured and your best hope of collecting anything is the maximum in Small Claims Court where you can present the case without an attorney but even so, the preponderence of proof is on you to prove it was a loan (the contract that was signed a strong indicator or that and that it was not a "gift").
Still...if the person has no gainful, known employment that can be garnished, or owns any real estate that the Judgment can be attached to if you win, the best you may get is a worthless piece of paper (as far you receiving any money back) that is not enforceable and could take 2 years or more to drag through the Court system, whereby you will have to take off work. The only upside is he would also and if he doesn't you may be granted a Default Judgment that could show on his credit report for the next 7 years and prevent him from getting extended anymore credit from a legitimate source.
2007-02-12 18:58:13 · answer #2 · answered by bottleblondemama 7 · 1⤊ 0⤋
Is he late repaying the loan? You could sue for the money.
However, he did nothing illegal. He's a liar, not a criminal.
As you say, the note doesn't stipulate how the money is to be used.
2007-02-12 18:42:44 · answer #3 · answered by Anonymous · 1⤊ 0⤋
This is civil, not criminal. Contact a civil attorney and run the situation by him or her.
2007-02-12 18:41:18 · answer #4 · answered by TCSO 5 · 1⤊ 0⤋
Civil.
2007-02-13 01:27:28 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Not criminal. You will have to go through civil court.
2007-02-12 18:44:24 · answer #6 · answered by Anonymous · 1⤊ 0⤋
doubtful
you can prob get a civil judgment for the money--but how will you collect that?
2007-02-12 18:40:07 · answer #7 · answered by cork 7 · 1⤊ 0⤋
Yes. Go to your local magistrates office and file. Good luck.
2007-02-12 18:40:07 · answer #8 · answered by Anonymous · 1⤊ 1⤋
You can if he admits misusing your funds, but he will never admit it, so go to civil court.
2007-02-12 18:44:35 · answer #9 · answered by Nort 6 · 0⤊ 1⤋