I have a relative that borrowed 10k to a nephew 20+ yrs ago, we have documentation, can we recover?

Question

My great aunt loaned a relative 10k - 20+ years ago. He promised to pay it back at a set interest rate, which is all documented. He made one payment over that time and sent
multiple letters with various reasons for not being able to pay. He has done this before with other relatives and has gotten away with it because of them passing away and now
out of a matter of principle my great aunt would like to do something about this, I was just wondering if this would be a valid case and how would we go about trying to recover the
money? My aunt lives in Minnesota and the borrowee lives in Iowa. Not sure if anything can be done, but I just don't think it is fair that she gets take advantage of so I am trying to help. Thank you for your time, if there are any questions or any more information is needed, please contact me. Thank you.

Answer 1

I am sure you could, but that is a long time and it might cost more in court costs than the 10K AND you might burn bridges. You would have to go to court, he would be subpoena'd and then have to fly to your state and it wouldn't be easy.
Contact Judge Judy! :)

Answer 2

The statue of limitations has long since passed; however, it you Aunt gets something in writing from the nephew now where he willingly acknowledging the debt and setting for a new agreement to repay the debt now, it may start the clock again and your Aunt may have some recourse.

An attorney her State would be able to answer and assist her with this best, but it may not be cost effective...if the nephew doesn't he have the money or attachable assets there is nothing to go after, except a garnishment of pay (even though attorney fees and Court costs are usually asked for in the Judgment to be reimbursed, in the meantime she would be footing the bills in pursuing the matter). Only upside for a win is that a Judgment is renewable every 10 years and will show up on his credit report.

She would have nothing to lose but the cost of stamp to send him a letter indicating she lent him the money when he needed it and she is now in a position where she needs the money back and ask once again for payment arrangements. If nothing esle, it puts him on notice that the loan was not forgotten or forgiven.

Answer 3

you need to file a claim in her home county court. this can be done without an attorny or you caan get the form from one.... I would think he would only charge $50 or so to file. .. there will be an inicial hearing which nothing really happends except to state your case, and he has a chance to answer. I am betting he will not show up, in which case you will get a default judgement for the entire amoung with interesd which depending on the rate will be somewhere around $25-30,000. you can then put a lien on his home and garnish his paychecks by judt filling out a form and filing it in HIS county.

If he does show up there will be a trial day set. when that day comes, it is still and easy case since he sent letters, and I would assume would take a few hours. might want to spend the $300 or so to get an attorny for that, and then follow the above suggestions once you have the judgement.... very unlikely he will show up!

I dont think the staturts of limitation plays into this or has run out since it doesnt erase a cash loan...( or 30 year morgages would be void after 7 years) it would if there is a claim ofr "damages" or an unsettled busness deal that was not paid for... in any case, if he doesnt show up that will not even be an issue.

Answer 4

Since your aunt lives in Minnesota,and the borrower lives in Iowa,that is a good question that the courts in Minnesota,can answer for you.
This comes under the heading of (Small Claims Court) in any state mind you and since you have all the documentation for this transaction I do not see why not but I will tell you this it all depends on the Statue Of Limitations,of the state of Minnesota,I mean it has been twenty years but you know what it does not hurt to check with that court you never know until you do right!

Answer 5

Probably not.

Each state has a series of laws relating to "limitations of actions". They mean that after a certain period of time you cannot collect on certain types of debts.

Usually, as long as someone is paying on a loan, this period renews with every payment, meaning you could sue after 20 years. Here, however, you said there was only one payment. If it was enough years ago, you are probably not able to successfully sue now.

Sorry.

Answer 6

Smed is correct IF there has been no payment on the account. otherwise, the statute of limitations would begin to toll from the last payment.

Also, even if the statute of limitations is not at issue, the doctrine of Laches applies "He who does not assert a right under {UCC} law losses that right."

Answer 7

nope, that statute of limitations has run out on that one.