Q: I loaned my sister $40,000 and she is refusing to pay me back.
My sister had property in foreclosure so I loaned her $40,000 that I borrowed from my father-in-law on a promissory note in my name because he didn’t know her. The money went directly into her checking account. I paid off the note. Now she doesn’t want to pay me back. Is there a way for me to collect this loan?
A: Sue her. Of course, you have her signature on a document promising to repay, just like a bank would have if it loaned $40,000, right? Because if you are going to act like a bank, of course you took all the precautions that a bank would take including a trust deed securing your loan with the property, right? Otherwise, how are you going to prove the oral contract versus a gift of $40,000? You should contact a local litigation/ contract/ collections attorney.
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