Loan to Family members who agreed to pay it back but won't now

C

chelsea07

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19
Hello,

I gave a family member a lend of 100k on the condition that it would be paid back over monthly installments. As I owe some of the money myself to the bank. Due to the timing of the situation there wasn't any agreements in written form but phone conversations, verbal agreements and texts backed up that they would pay it back .

Since they are avoiding the topic now I am considering getting legal advice, do i have a case given there were no legal agreements in place ?
 
chelsea07 said:
Hello,

I gave a family member a lend of 100k on the condition that it would be paid back over monthly installments. As I owe some of the money myself to the bank. Due to the timing of the situation there wasn't any agreements in written form but phone conversations, verbal agreements and texts backed up that they would pay it back .

Since they are avoiding the topic now I am considering getting legal advice, do i have a case given there were no legal agreements in place ?
Click to expand...

If the money is due, you can sue to recover it.

I suggest you write a letter in the first instance explaining that you now require (all) (some) of the money loaned back and an agreement on instalment payment into the future if applicable. And that , regrettably, you will engage the services of a solicitor to recover the money if agreement/settlement is not on the cards.

I suspect that at the very least you will get a response confirming or denying that the money was a loan. Once you do hear back ( with the explanation) or don't hear back ( which would lend weight to your claim that the money was a loan and not a gift ( which may well be the answer now) that a solicitor would be better able to advise you of the strength or weaknesses of any proposed case.


mf
 
thanks for your response.

In the event that they claim it was a gift (as they think i would not have a legal case), are there any tax implications for them ?

I don't want to go down the legal route but if I am pushed I will have to
 
chelsea07 said:
thanks for your response.

In the event that they claim it was a gift (as they think i would not have a legal case), are there any tax implications for them ?

I don't want to go down the legal route but if I am pushed I will have to
Click to expand...

I have a view that the best way of dealing with things is to stick to what happened and don't go off on a tangent. I find it very effective because everyone can (should!) then focus only on what is at issue and not what the potential ramifications of a particular line of reasoning might be down the line.

I rather suspect that, notwithstanding the large sum of money involved, the parties may have had rather different views and expectations of what was actually happening at the time and what would happen in the future.

Do report back and let us know what transpired.


mf
 
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