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I allowed a friend to borrow $9,000 against a CD. We are no longer friends, (suprise suprise) and he has just called the bank to let them know he has no intention of paying the loan back. The balance is $8400. What are my options? I am located in Texas.

Submitted: 535 days and 23 hours ago.

Category: Legal

Value: $30

Status: CLOSED

Optional Information:
Hemphill, Texas

Already Tried:
Nothing.

Posted by PaulMJD 535 days and 23 hours ago.

Answer

Your option is to file a lawsuit against the person you loaned the money to. If you have nothing in writing, he will likely argue it was a gift and not a loan, but you can still enforce an oral agreement in court. Absent getting a legal judgment against him and then filing for a garnishment and/or placing a lien on his property, there is not much else you can do if you want to try to recover your money.

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535 days and 23 hours ago.

Reply

The loan was made through a bank, in his name. that would be considered a loan, correct?

Posted by PaulMJD 535 days and 23 hours ago.

Answer

That would be considered a loan, did he make the loan and did you use your CD to secure his loan? If so, then the bank would have the right to go after the CD to repay the loan and your recourse is to go after him and secure a judgment against him for whatever your losses are.

535 days and 23 hours ago.

Reply

Yes, I used the cd to secure the loan. I am going to the bank tomorrow to "take care" of that...Live and learn. He is a sheriffs deputy. you would think he could be trusted. scum comes in all forms i guess. thanks for your help.

Accepted Answer

I have even seen law enforcement officers do it to each other. Yes, they can hold you liable for the loan and take the amount owed from the CD. I am sorry that you are in this situation, but your best recourse against him is to file a legal action against him to recover. Since he has a job, if you win a judgment against him and he refuses to pay, you can immediately get a garnishment against his pay, which is fairly easy especially with law enforcement agencies.

Accepts:
Expert:	PaulMJD
Pos. Feedback:	99.5 %
Answered:	6/3/2008

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Question

I allowed a friend to borrow $9,000 against a CD. We are no longer friends, (suprise suprise) and he has just called the bank to let them know he has no intention of paying the loan back. The balance is $8400. What are my options? I am located in Texas.

Optional Information

Optional Information: Hemphill, TexasAlready Tried: Nothing.

Answer

Reply

The loan was made through a bank, in his name. that would be considered a loan, correct?

Answer

That would be considered a loan, did he make the loan and did you use your CD to secure his loan? If so, then the bank would have the right to go after the CD to repay the loan and your recourse is to go after him and secure a judgment against him for whatever your losses are.

Reply

Yes, I used the cd to secure the loan. I am going to the bank tomorrow to "take care" of that...Live and learn. He is a sheriffs deputy. you would think he could be trusted. scum comes in all forms i guess. thanks for your help.

Accepted Answer

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Optional Information:
Hemphill, Texas

Already Tried:
Nothing.