Legal Question in Credit and Debt Law in Pennsylvania
norarized loan repayment
My 21 yr. old daughter took out a loan for her friend to fix his car($l800). She has a signed and notarized statement stating that he would pay it back. However, now he is in jail and of course my daughter is stuck paying the loan. When this is finally paid back it will amount to $2300 due to interest. How binding is this signed, notarized statement. What steps should she take or is this going to be a hard learning experience for her?
2 Answers from Attorneys
Re: norarized loan repayment
From the facts you provided it appears that the statement signed by the boyfriend would be interpreted as a contract for the boyfriend to repay your daughter. Therefore your daughter can file a lawsuit in the local District Justice (DJ) court & try to obtain a judgment against the boyfriend. My guess is that at this time he is unable to pay any money. However the judgment is good for 5 years and can be renewed prior to the expiration of 5 years. If the boyfriend is able to pay at some time in the furture, hopefully your daughter can collect, either voluntarily or involuntarily. Note that if your daughter obtains a judgment in the DJ court, I think it would be best to record the judgment in your county Common Pleas court. In any case, this will be a good lesson for your daughter. It's never a good idea to guarantee a loan- there are always risks.
Richard K. Teitell, Esq.
Re: norarized loan repayment
It would appear that your daughter has a valid contract. These contracts can be enforced at the magisterate court. The fact that her boyfriend is in jail would not be a defense, if he is default she could obtain a judgement. However obtaining a judgement and collecting are two totally separate things. Her boyfriend must have assets in his name to execute on the judgement.
Brandon Barnett, Esq.
412-916-1677
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