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Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: Legal
Satisfied Customers: 41220
Experience:  Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.
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I loaned money to a couple to purchase a home; they agreed

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I loaned money to a couple to purchase a home; they agreed to pay 5% compound interest. This past January I was informed that the husband had lost his job so they were going to pay off the entire amount of what was left. I could not find the original promissory note as I had moved twice since making the loan so they would not agree to pay 5% compound and would only agree to pay 5% on the amount still owed. Anyway, they ended up not paying the entire amount due as they needed to keep some money for themselves and only made a payment that would keep them up-to-date for 7 months to give him time to get back on his feet and then they would start paying again. In the meantime I did find the original promissory note in which they agreed to pay compound interest. I sent them a certified letter with a copy of the original promissory note note along with a letter showing how I re-figured 5% interest at the end of each year in which they still owed me money. They have just sent me a letter stating they will not pay the additional interest and if I don't sign this letter, which they have both signed, for the original total agreed upon in January they will be seeking a lawyer and will possibly have to file for bankruptcy as he is still not working due to illness. If I sign the letter they will start payments up this month at $500/mo. To add injury to all this, the female was my boss, she always discussed this loan and made all her payments to me at work until about a 1-1/2 years ago when I asked them if they could start paying extra as I was in terrible financial shape myself. She refused and we had to go to Human Resources where I was almost fired from my job. She made my job miserable since then I was fired back in May. Also, they took 3 cruises during this loan (which have been 6+ years now, taking one every other year AND one of them was after they told me in January that they could not pay off the entire loan back this January and he was already not working.

Thank you for your question.

I am sorry to hear that you have this situation. However I am a bit unclear as to you actual question. How can I specifically assist you? What is your question? How much do you calculate they owe you?

Customer: replied 4 years ago.

Sorry, I guess I did not make that clear. So what I want to know is, since I did find the original promissory note where they did agree to pay 5% compound interest I refigured the loan and they owe me $1400 more if I calculate the interest at the end of each year they still owed me instead of only adding 5% interest at the end of the loan. If they indeed hire a lawyer who is in the right, me since I did find the original promissory note or them, since I did sign another note figuring the interest in only once, along with the fact that they could not pay me the entire amount in January and pay off the loan because they "didn't have the money" and then after I agreed on that they took another cruise.

Thank you for your follow-up, Jill.


Hiring a lawyer does not make one party more 'right' than the other, it is just the attorney may assist them in arguing that if you accepted the initial payment for less, you 'waived' your rights to additional benefits and that you essentially modified the terms of the promissory note. Them taking a cruise (or multiple cruises) is not an issue since their debt to you is separate from their other expenditures. I can understand your frustration but provided they were paying you as contracted OR as you consented, there is no breach. In terms of how much they owe you, yes, they can file for bankruptcy and potentially discharge the debt, but there is no guarantee that they will do so. As for the amount owed, it is small enough that you may want to consider taking them to small claims for the additional funds owed to you. Just please know if they can produce writing where you agree to take less, the courts will use that writing against you.

Good luck.

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Customer: replied 4 years ago.

Thank you. Not really the answer I was hoping for as $1400 is quite a bit of money who was out of work for 3 months but I guess I will have to settle for that.

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