Can I sue?

rocko139December 12, 2012

I put up a 50,000 CD as collateral on a loan at a local Credit Union for my nephew and niece in law.. SHE promised to pay it off within 2 yrs at 800 to 1000 a month. However now they are going thru a divorce and she wants my nephew to pay it off.. Balance is still 22,800. He is working an 9.00 per hr job, she annually makes 85,000! If this goes delinquent, and they take my cd can I sue her? There is no promissory note, only some emails from her thanking us for helping them out.

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What does your lawyer suggest?

    Bookmark   December 12, 2012 at 9:37AM
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Exactly--the only one you should be asking legal questions to is your lawyer. With that kind of money involved, you cannot afford NOT to be getting good, legal advice from an attorney. And you're right to ask those questions now--BEFORE things get any more complicated. Call your lawyer, sit down with him/her, find out how you need to be protecting yourself in this instance and follow their advice.

    Bookmark   December 12, 2012 at 1:39PM
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Never lend money to friends or relatives.

    Bookmark   December 13, 2012 at 8:32AM
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You need a lawyer, and your nephew needs a divorce attorney.

If the CD was put up as collateral for a loan with the credit union, I would imagine that there's documentation related to how the loan was set up and that there's also documentation that they were the ones paying off the loan. A lawyer would probably be able to use that information to demonstrate that the debt is a marital debt shared between them, and not a gift that you gave them.

You should also keep in mind that the decision regarding who pays you or who pays what percentage may end up being decided as part of their divorce agreement. What she wants and what they agree to legally may not be the same thing. If he ends up being the one to pay you because of the divorce agreement, hopefully you can be okay with it.

    Bookmark   December 13, 2012 at 12:27PM
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By putting up the CD you basically co-signed for the loan. Check with a lawyer but if they are behind in their loan if you don't want to forefit your CD start paying the loan and then sue the two of them.

    Bookmark   December 14, 2012 at 1:07PM
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Firsst off ... have a talk with the credit union, to ensure that the regular payments are made.

I think that I'd be inclined to have a talk with the lady, myself ... if they are having problems, she might be more agreeable to making a better deal with you.

Probably run that one by your lawyer, first.

ole joyful

    Bookmark   February 26, 2013 at 7:24PM
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