Comments on: How do I get someone to give me money?

Question: How do I get someone to give me money?

suedehead — Wed, 06 Feb 2008 12:11:31 -0800

How do I get someone to give me money? Someone owes me $800. After much wrangling and talking, we finally agreed that the person would pay me back $20 a month, without interest.

Problem: I might move, and so may not be in the person's state next year. What's the best way to create an agreement and to document it, so that if she stops paying me for some reason, I have clear, documented evidence (that will hold up in court) of how much she did pay me, and how much she still owes me?

Will bank checks suffice as evidence? Is there any way to get a third party? I do plan to create a written contract/agreement, but are there any things I should watch out for?

By: Inspector.Gadget

Inspector.Gadget — Wed, 06 Feb 2008 12:20:02 -0800

I'm not sure how $800 stacks up against the usual fees for drafting this sort of thing, but you'll probably want to talk to any friends of yours that happen to be attorneys.

By: zennie

zennie — Wed, 06 Feb 2008 12:27:29 -0800

Go to a notary public.

By: samsara

samsara — Wed, 06 Feb 2008 12:30:56 -0800

Write up a contract and get it signed by both participants (and notarized at the lendee's expense if you'd like). If you have the kind of lawyer that will do free consultations pursue that too for the wording, athough my guess is it will be fairly basic (eg. "I ____ agree to pay x payments of $x for the sum of $xx" x______"). Make sure each payment is paid by check (or is reportable via a reputable 3rd party).

If it doesn't pan out, send a letter of intention or two...then take it to court.

By: grouse

grouse — Wed, 06 Feb 2008 12:34:50 -0800

You should add an acceleration clause, so that the whole debt becomes due immediately if she starts missing payments or declares bankruptcy. Otherwise you might find yourself in the unenviable position of suing $20 at a time.

You may also want to add penalties if she defaults, such as interest or reasonable attorney's fees for recovery.

Send her a statement every month to create a good record of how much has been paid and is still owed.

By: zippy

zippy — Wed, 06 Feb 2008 12:46:41 -0800

Your bank may notarize documents for free. Mine does.

By: trinity8-director

trinity8-director — Wed, 06 Feb 2008 13:09:37 -0800

In addition to grouse's acceleration clause, have the lendee put up something as collateral. As an extra incentive to pay, you know.

By: 45moore45

45moore45 — Wed, 06 Feb 2008 13:43:05 -0800

When I borrowed money from my brother, what I did was write him a stack of pre-made out checks that he could deposit once a month. The stack of checks reflected the entire amount I owed. The last check was the interest for the loan. Maybe you could ask her to do the same, although you might want to bump it up to $20 a week so you aren't dragging it out for the rest of your life.

By: eritain

eritain — Wed, 06 Feb 2008 14:53:29 -0800

Going to court could still be a pain if you will be far apart. Many a EULA I've accepted has had a clause determining venue. Can you insert one of those to make it easier on yourself?