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What will happen if I cannot pay back an unsecured personal loan?

Fort Wayne, IN |

While married to my former husband, we borrowed money from his Father's company. I signed a promissory note. It is stated in our dissolution that I am responsible for this loan. However, we reconciled, after the dissolution, and my ex husband (who is now President of his Father's company), verbally told me that they were writing the loan off. My mistake, I did not get that agreement in writing. We are no longer together and have not been for the last 5 + years. Now, my ex-husband, six years later, is demanding that the loan be paid in 60 days and is willing to accept no less than 2/3 of the loan amount. I don't have the money to pay that amount. If I make any type of payment on a monthly basis, can they do anything to me? I have no assets, but have excellent credit.

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Filed under: Credit Debt Estates
Attorney answers 1

Posted

Check with a lawyer in your local area. You may be past the statute of limitations for your husband to pursue this matter.

Disclaimer - This presentation does not constitute legal, accounting or other professional advice. Only through a personal, confidential consultation with qualified legal counsel can anyone properly evaluate their own unique estate planning challenges and determine what, if any, appropriate legal strategies and tactics should be implemented to meet those challenges.

Circular 230 Disclaimer - “Nothing in this presentation is intended or written to be used, and cannot be used by any person for the purpose of avoiding tax penalties regarding any transactions or matters addressed herein. You should always seek advice from independent tax advisors regarding the same.”

Asker

Posted

I have an additional question - if I don't pay back a loan, will I be required to pay taxes on it as income? In my case I borrowed from my company to pay an estate tax bill and I really don't want to infuse any money back into the business

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