How to collect on a loan based on an oral agreement and no witnesses?

Bankruptcy and Debt 2 views 3 answers
My aunt lent $3000 to a friend/co-worker in 2013. She told her friend that he could take his time repaying (the loan was to help with funeral arrangements and said friend was in mourning). She now wants to recover the money, but they only had a verbal agreement AND she (very unwisely!) paid in cash. She did tell me that her friend has told other co-workers that he knows he needs to repay, that he feels bad, etc. When my aunt approached him regarding repayment, she says he becomes upset and defensive. My aunt feels uncomfortable asking their co-workers/mutual friends to be witnesses, but I feel they are her only hope as there is no other proof. She is considering small claims court, but how will she know that her friend won't claim that it was just a gift??

Attorney Answers

3
Eric Rothstein ·
See if your Aunt can secretly record a conversation with the person assuming they are both in New York, which is a 1 party consent state.
0 upvotes
Joseph Levasseur ·
Better yet, send him an email asking him when he plans on paying the loan back, or a letter if email is unavailable. If he responds that he doesn't yet have the money then there's your proof. If he doesn't respond at all, silence could be used as an admission because a normal person would write back and say what are you talking about or at the minimum deny it. Worse comes to worse, then Simply call on the witnesses. She can also send an email to a witness asking if the man said anything about paying the loan back to them. If they respond in the positive,, they Won't be able to back out later. Good luck.
0 upvotes
Richard C. SouthardCriminal Defense AttorneyNew York, NY ·
The best thing to do is to try and gain an admission from the borrower as to the existence of the debt. However, even if she is successful in small claims court does the person have assets sufficient to cover the judgment, assuming she wins?
0 upvotes

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