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Barrister
Barrister, Attorney
Category: Legal
Satisfied Customers: 33781
Experience:  15 yrs practice, Civil, Criminal, Domestic, Realtor, Landlord 26 yrs
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A person I loaned money to is not making payments when they

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A person I loaned money to is not making payments when they were suppose to start in july 2013. It cost me a penalty of 10 percent to take it out of retirement and also I have to pay taxes on the 9000 dollars he borrowed and he said he would pay me 10 percent. everything was signed and written in a loan paper. He is a mortgage banker but says he does not have the money to pay the loan. Should I file in superior court. Also,i loaned him one of my vehicles which he put 20,000 miles on and the transmission is gone now and will be 3,200 to fix. Of course he doesn't have the money to pay for that either. XXXXX XXXXX
Hello and welcome! My name is XXXXX XXXXX I will try my level best to help with your situation or get you to someone who can.
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Do I understand correctly that he agreed in the contract to repay you the costs you incurred in getting the money for the loan as well as the actual loan?
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What is the total amount that you calculate that he owes you?
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Thanks
Barrister
Customer: replied 3 years ago.

IT SAYS IN THE CONTRACT 10 PERCENT BUT HE KNOWS IT COST ME 30 PERCENT BETWEEN EARLY WITHDRAWAL AND PAYING TAXES ON IT. THE TOTAL AMOUNT HE OWES ME ON THE LOAN IS 12.600 AND THAT IS NOT INCLUDING ANY MONEY TOWARDS THE TRANSMISSION. I LOANED IT TO HIM BECAUSE HE WAS BEHIND IN ALIMONY AND WAS DEFINITELY GOING TO JAIL IF HE DIDNT PAY THE MONEY THAT WAS THE ONLY REASON I DID IT

Ok, if you have a signed contract for a loan that he has failed to repay, then your recourse would be to file suit against him for breach of contract and get a judgment against him.
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MD only has a $5,000 limit in small claims, so you would have to hire an attorney and sue in a higher court like District Ct. to recover the full amount. You may have a tough time getting the penalties and charges for cashing out the retirement funds if you don't have it in writing in the contract that he agreed to repay you for that.
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As for the car, if you loaned it to him with the understanding that he would take care of it, if he has acted in such a way as to damage it, you can hold him liable for the repairs under a negligence and breach of contract claim for that as well. You can lump all your claims into one suit so as to address everything at once.
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Once you get a judgment against him, you can ask the court clerk to issue a wage garnishment to his employer to garnish up to 25% of his wages until you are repaid.
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Thanks
Barrister
Barrister and 5 other Legal Specialists are ready to help you
Customer: replied 3 years ago.

Thank you I gave you excellent service rating


 


 


 

Thanks so much for the positive rating, it is very much appreciated!

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Barrister