I am screwed up to the bone. I need help.

[Deleted member 121863]

I have about 70,000 owe to me through the years too. Here is my intake. This guy hasn't pay him from 2008. He has no intentions of paying him. I think it will be a miracle if he did. Although I do believe in miracles. I think he is just telling him what he wants to hear. He be a fool to sign a new contract when he doesn't owe at this point. You are past the statue of limitations to pay at this point. You can't sue this guy, or take any of his assets. It is illegal at this point. Fraud?, he had made an effort to pay back that debt until he couldn't. He had a divorce and business went bad. There is no fraud here.

Signing a new contract does not ensure you will get your money back either. Most people that get sued can simply file BK and call it a day. Laws do not protect the people who are honest, more the ones who scam. I know, I own 2 businesses and wrote off many bad debts. Going to court will not ensure anything and that is where you have to go to legally try to get that money back. But he can not even do that.

To the OP, you loan money to the wrong person. Never lend money to any friend or family, that is the worse. You always ensure you have some collateral for that debt or you are taking a big chance. I am speaking from experience here. I learn through the years never to loan money to anyone. It sounds like you have a good heart, I did too, but business is business. You can not tap that guys accounts, his or anything he has. You would be breaking the law at this point. Legally, you don't have any ground. You can however write it off on your taxes as bad debt. Please see an accountant for that.

Because the guy says he got divorced and business failed means none of the money was misappropriated? You know the dead beat or something? If it was done through any LLC, INC name it can be pinned on him FOREVER! I`m not talking about some non-sense your gonna find a credit message board.

Second, if OP gets a judgement on this guy (after finding out he has assets) he most certainly can freeze those accounts by simply getting the judgement papers to the right dept at the bank. Yes, debtor could file BK and get his account(s) unfrozen but if he has enough assets he could not file chapter 7, at best chapter 11 and would still have to pay back most if not all the money

 

[pesty4077]

Because the guy says he got divorced and business failed means none of the money was misappropriated? You know the dead beat or something? If it was done through any LLC, INC name it can be pinned on him FOREVER! I`m not talking about some non-sense your gonna find a credit message board.

Second, if OP gets a judgement on this guy (after finding out he has assets) he most certainly can freeze those accounts by simply getting the judgement papers to the right dept at the bank. Yes, debtor could file BK and get his account(s) unfrozen but if he has enough assets he could not file chapter 7, at best chapter 11 and would still have to pay back most if not all the money

Please quit while you are ahead. People's Businesses fail all the time, that does not make you a deadbeat. You do remember the collaspe of our economy? Many businesses failed and guess what? \That is when this guys did. He might not have ever recover, do you know him personally?? I sure don't, he could be a deadbeat or he just had bad luck with the economy. Many lost businesses failed at that time.

Now getting back to what I know and you don't. I own several corps, good luck trying to collect from an empty corp. That is why you get corps, to protect your personal assets. I have no idea if this contract was individual or through a corp. Neither do you. One thing I do know is he is past the statue of limitations to collect. You did not see that link, did you?? There is nothing he can do legally. How do I know this??? because I have debt to I can no longer collect on legally.

Stop giving out advice when you don't know what you are talking about. He can go to a Real lawyer, but i afraid they tell him the same thing. What I would advise is for him to write it off on his taxes as a bad debt for business. This way he can get some of his money back.

For your reading pleasure, since you didn't bother the first time.

Statutes of Limitations: A statute of limitations on a debt is defined as the period of time following the last payment made on an account, during which a creditor can successfully sue for payment. Once the statute of limitations has expired, however, the debtor has an absolute defense in the case of a lawsuit. In other words, you no longer have to pay.

The statute of limitations in Florida is five years for written agreements and four years for oral agreements. It is important to realize that statutes of limitation on debts do not affect how long they may be listed on your credit report – generally for seven years.

 

[pesty4077]

By the way, I originally borrow a 125K loan from a good friend. I owe him approx. 50K left on that, It is past the statue of limitations. There is nothing he can do legally anymore. Since him and I know each other, we worked out another deal that made him satisfied. He needed a General contractor to be on the Bank list for his development of houses. I agreed, he is happy, my debt is paid.

If this guy has good intentions like I had, then use that to your advantage. I don't think a new contract is your solution, collateral is. See if he will really pay you back or get a vested interest in his business, car, or anything that can be secured for your loan. This way you now have secured collateral. If he tells you no, then legally you can not do anything against him. You can also try bluffing him, if he does not know laws like the statue of limitations. Never threaten him though. If he agrees to the collateral, get it in writing and do in though a legal contract through a notary. If this guy really is broke like you think, start looking to writing a loss on your taxes. I wish you the best.

 

[para]

Certainly Pesty4077 has accurate points, but the question for the lawyer is when you redid the payment terms in 2008 and he dictating new terms that stated he would pay you eventually, when would the new 4-5 year statute of limitations begin? My feeling is it begins now when he breached the agreement again and you don't want to work with him anymore. Based on my experience in this arena, I think the courts would look favorable on your willingness to work it out with him and your rights shouldn't go in the toilet. At least find a lawyer who will rattle his cage and shake out what they can.

 

[pesty4077]

Certainly Pesty4077 has accurate points, but the question for the lawyer is when you redid the payment terms in 2008 and he dictating new terms that stated he would pay you eventually, when would the new 4-5 year statute of limitations begin? My feeling is it begins now when he breached the agreement again and you don't want to work with him anymore. Based on my experience in this arena, I think the courts would look favorable on your willingness to work it out with him and your rights shouldn't go in the toilet. At least find a lawyer who will rattle his cage and shake out what they can.

I agree para, but if he made a new contract and made no payments since 2008. It goes by last payment or new contract.. That is how I am reading it, it is still past the statue of limitations of 5 years. I do agree about trying to bluff him. He might not know these laws. Try to rattle his cage, but no threats.

 

[para]

I agree para, but if he made a new contract and made no payments since 2008. It goes by last payment or new contract.. That is how I am reading it, it is still past the statue of limitations of 5 years. I do agree about trying to bluff him. He might not know these laws. Try to rattle his cage, but no threats.

Agree, but don't you think the debitor may have shot himself in the foot by entering into a new contract in 2008 that established new repayment terms? The creditor conceded on money to help that process. I guess at the end of the day, it doesn't seem cut and dry. If in 2008 he went into default and then now the creditor decides he wants to sue, then he can't. Since they settled on something new, I think he still has time. Anyway interested to hear the outcome.

 

[richiec]

OP, if you are in a situation where the legal system can't get you money back, simply do this:

Issue him a 1099 on the rest of the money he owes you and you can write it off!!! He'll be stuck paying 15.5(ish)% of that, or over $10k and you get write it off!!! Yeah, it sucks if you can't get it back, but this may be your best bet

 

[Deleted member 121863]

Pesty , all great advice... OP, your f*cked, move on. You got boned that doesn`t mean everybody else does. Yes he stopped paying when the economy tanked so what? That would be MORE reason the guy would have misappropriated funds to pay for things not covered by the agreement. If that`s the case, corp, LLC or personal the debtor is STILL ON THE HOOK!! Corp is not shielding you on that.

 

[para]

Pesty , all great advice... OP, your f*cked, move on. [B]You got boned that doesn`t mean everybody else does. Yes he stopped paying when the economy tanked so what? That would be MORE reason the guy would have misappropriated funds to pay for things not covered by the agreement. If that`s the case, corp, LLC or personal the debtor is STILL ON THE HOOK!! Corp is not shielding you on that.

Dude what are you talking about? Obviously you don't have a lot of business experience. OP get a lawyer and work through it.

 

[para]

OP, if you are in a situation where the legal system can't get you money back, simply do this:

Issue him a 1099 on the rest of the money he owes you and you can write it off!!! He'll be stuck paying 15.5(ish)% of that, or over $10k and you get write it off!!! Yeah, it sucks if you can't get it back, but this may be your best bet

That won't work with the IRS and the OP could get sued by the debtor. All the OP has to do is go after him via a lawsuit. All the IRS cares about is that he made an effort to collect. It is a good idea to write off all or some, but the mechanism is different than a 1099.

 

[richiec]

That won't work with the IRS and the OP could get sued by the debtor. All the OP has to do is go after him via a lawsuit. All the IRS cares about is that he made an effort to collect. It is a good idea to write off all or some, but the mechanism is different than a 1099.

Wrong as I've seen it done before.
You can write it off as a bad debt and a debt forgiven, the guy is on the line for it. I've seen it done by somebody in my family it wasn't to the tune of $70k, but it was a few grand. The guy had to pay his SSI and Medicare % as well as federal income tax on it.
You do understand there isn't just a single form of the 1099 tax filing right?
You are right about one thing, he needs to talk to a lawyer either way

 

[ronnieron]

not sure of the statue of limitations in Flordia? The SOL kicks in after last payment is made, so even if he is past, you can get him to reset the SOL if payment is made on the debt. No matter the amount. The SOL is probably like 4 or 5 yrs

 

[para]

Wrong as I've seen it done before.
You can write it off as a bad debt and a debt forgiven, the guy is on the line for it. I've seen it done by somebody in my family it wasn't to the tune of $70k, but it was a few grand. The guy had to pay his SSI and Medicare % as well as federal income tax on it.
You do understand there isn't just a single form of the 1099 tax filing right?
You are right about one thing, he needs to talk to a lawyer either way

I didn't quite understand what you were saying before, but I got what your talking about, a 1099C cancelation of debt. I have personally had those done both ways. He would do that but after he tired a couple legal remedies and ONLY if he collects nothing or partial. Then the IRS is ok with writing it off.

 

[Deleted member 121863]

Dude what are you talking about? Obviously you don't have a lot of business experience. OP get a lawyer and work through it.

Dipshit, just stop quoting me. You wanna try and help the OP go ahead, otherwise fuck off and don`t bother me. You have no idea what I`ve done or know. If there was fraud with the money your stupid SOL off the credit board does not apply. That`s what I`m saying. If this money was for one idea and ANY money went someplace else this applies. If he was getting divorced, everything going to shit and he`s got this bunch of cash sitting there....

 

[BIGNFIT]

I am following up with the debate. Any further question on the situation, I am here to answer.

 

[richiec]

I didn't quite understand what you were saying before, but I got what your talking about, a 1099C cancelation of debt. I have personally had those done both ways. He would do that but after he tired a couple legal remedies and ONLY if he collects nothing or partial. Then the IRS is ok with writing it off.

Yeah, my wife tells me I'm lousy at communication A LOT

 

[Marvin Martian]

like 20 years ago, a dude who was once my friend owed me 500$, and he kept dodging me for a while, and when i finally ran into him once (at a train station) he came clean that he can't pay the money and asked what i wanted. and we came to an agreement that i'd forget the money if he would let me bash him for a full 10 seconds. imagine what you could get for 70,000!

You did no such thing... You just fantasize about being a tough guy - lol