Q: i lent $20,000 to a family member and they dont want to pay it back
i received money when i turned 18 through my late mothers life insurance, my aunt convinced me to lend her $20,000 and she told me she'd pay me back monthly. She works for the state at a community college and gets paid well, so I thought it wouldn't be an issue. she paid me 3 times $1,420 and then payments stopped there. Its been 6 months no payment i have texts with her admitting to her borrowing the money but when i confront her about it she acts as if it never happened. it has me worried i wont get my money back, so i'm asking this to find out if i can take legal action?
A:
In California, you can take legal action to recover the money you lent to your aunt. The texts where she admits to borrowing the money can serve as evidence in court. You have the right to file a claim in small claims court since the amount is below the small claims limit of $12,500 as of 2024.
Before going to court, you might want to send a demand letter to your aunt, formally requesting repayment of the loan. This letter should include details of the loan, the amount owed, and a deadline for repayment. Often, a demand letter can prompt the borrower to repay the debt to avoid legal action.
If she still doesn't repay after receiving the demand letter, you can proceed with filing a small claims lawsuit. You'll need to gather all relevant documents, such as the texts and any payment records, to present your case effectively. Legal action can be a straightforward way to resolve this and recover your money.
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