Need help with a loan to a friend
 

About a year and a half ago I loaned a good friend of mine (at the time) $2k because he was broke and going through a divorce. He said he was getting a military check in January and would be able to pay me back then. Here it is December and now he screens my calls and doesn't reply to any emails and he moved to Michigan to go to Grad. school. What should I do to get my money bc at the time I didn't need bc i took his word he would have it back to me by Jan. Now he has bailed and ignores me trying to contact him bc I am in sort of a bind and need that money. Any suggestions?

Re: Need help with a loan to a friend
 

Loaning money to "friends" can really, really suck.

Do you have anything in writing?

Re: Need help with a loan to a friend
 

your money is gone.
he was not a good friend obviously.

learn, and move on.

Re: Need help with a loan to a friend
 

nothing in writing. just a handshake agreement. i know he is broke, but it doesn't help he partys all the time and blows his money. i wouldn't normally loan money like that but at the time he was one of my best friends and was struggling

Re: Need help with a loan to a friend
 

If you can get in contact with him I would suggest working out a payment plan. Even if it is 50 dollars a week it's better then nothing.

Re: Need help with a loan to a friend
 

you can right off the loss on your taxes so that will save you something

Re: Need help with a loan to a friend
 

I'd keep trying to get in contact with him. Sorry about your situation.

Re: Need help with a loan to a friend
 

Hire Frank the Tank and give him half if he collects.

Re: Need help with a loan to a friend
 

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you can right off the loss on your taxes so that will save you something

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The best part about this is that technically your friend then has to pay taxes on the 2K he received as it's now income for him. (might be considered a gift, but i'm not sure). He probably won't pay, but then you can feel good knowing that he's committing tax fraud.

Other than working out a payment plan, there's probably not much you can do...

Re: Need help with a loan to a friend
 

[ QUOTE ]
[ QUOTE ]
you can right off the loss on your taxes so that will save you something

[/ QUOTE ]

The best part about this is that technically your friend then has to pay taxes on the 2K he received as it's now income for him. (might be considered a gift, but i'm not sure). H

[/ QUOTE ]

His friend can claim 'gift' which is tax-free to him.

Re: Need help with a loan to a friend
 

Tell him you need the money and that he has to pay you at least some of it, or you'll be forced to tell everyone he knows that he stiffed you on a loan. $2k is not insignificant. I had a guy stiff me for $300, and I let that go, and I even regret that. Debts are debts, and they are supposed to be paid.

Be firm with him. Let him know that it's important for both of you that you get paid back.

Other tactics you can try:

(1) Tell him you'll be forced to call his family (parents, siblings, etc) if he doesnt pay. This is humiliating for someone.

(2) Tell him if he stops blowing off returning your calls, you'll have to show up at his work to ask him for the money. Nobody wants their boss and coworkers thinking they're financially irresponsible or untrustworthy.

(3) Ask him for some collateral if he says he's broke. Make him give you something valuable to hold until he pays.

(4) Sell the debt to someone a bit more menacing to you for 70 cents on the dollar.