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  1. #1
    Join Date
    Feb 2011
    Posts
    2

    Default Loan from Deceased Friend

    My question involves collection proceedings in the State of: NY

    I received a letter from an attorney representing the estate of deceased friend/business associate of mine. The letter claims that there seems to be documentation that my friend loaned me $20,000 in 1991 and "accordingly, if this loan is still outstanding, please send a check in the amount of $20,000 payable to the estate of XXXX or contact me to discuss satisfaction of this loan."

    I had several, somewhat complicated financial dealings with this friend but I am unaware of a $20000 loan. However, it was 20 years ago and I can't believe this attorney is persuing a frivolous claim. If there is documentation, does the SOL cover this situation dating back to 1991 or does the SOL begin right now since the executors just became aware of the loan.? My friend never raised the subject of this supposed loan and I was in contact with him over the years.

  2. #2
    Join Date
    Sep 2010
    Posts
    19,901

    Default Re: Loan from Deceased Friend

    Either ignore it and state that there is no such loan. Most likely they found an IOU or some loan agreement in the deceased papers and it's proper behavior of the lawyer handling the estate to do due diligence on checking to see if the asset exists. For all he knows, you've been making $10/month payments for the past 20 years and the loan is still active.

  3. #3
    Join Date
    Feb 2011
    Posts
    2

    Default Re: Loan from Deceased Friend

    Thanks for the reply. Do you know whether the rules regarding SOL would cover this situation? I do know my "not remembering" or thinking he didn't loan me money doesn't mean a thing. I don't have a single piece of paper or bank record from 20 years ago to even refresh my memory or for that matter to prove that I didn't receive a loan or if I did, that I re-paid it. I may sound a bit "dippy" - not remembering etc. but as I said my friend and I were involved in several business relationships that had some pretty big complications that had to be sorted out bewteen 1991 and 1996.

  4. #4
    Join Date
    Mar 2008
    Posts
    1,995

    Default Re: Loan from Deceased Friend

    Quote Quoting Patsym
    View Post
    Thanks for the reply. Do you know whether the rules regarding SOL would cover this situation? I do know my "not remembering" or thinking he didn't loan me money doesn't mean a thing. I don't have a single piece of paper or bank record from 20 years ago to even refresh my memory or for that matter to prove that I didn't receive a loan or if I did, that I re-paid it. I may sound a bit "dippy" - not remembering etc. but as I said my friend and I were involved in several business relationships that had some pretty big complications that had to be sorted out bewteen 1991 and 1996.
    Here is a link to the SOL law for NY State, in in this case, action against you should have commenced within 6 years of 1991, or of the due date (you didn't mentione what it is) or the year 1997. See:

    http://www.fair-debt-collection.com/...-State.html#33

    Best is to say it appears it's been settled years ago, and you no longer maintain records of it.

  5. #5
    Join Date
    Sep 2010
    Location
    Oklahoma
    Posts
    695

    Default Re: Loan from Deceased Friend

    A lot would depend on what documentation exists concerning the "loan". The SOL in NY for contracts is 6 years. The SOL begins when the contract becomes defunct by non-payment. If the SOL came and went during the persons life and he failed to act, then the estate has no right to the monies. If the SOL has not expired, then the estate can sue for the money.

    I would reply that you are not aware of any loan and demand the attorney provide proof of the obligation. Once you have that you'll have a better understanding of where you are at. I would say that you don't have anything to worry about. I think it would be easy to argue that the person had the opportunity to file before the SOL and failed to do so forfieting any claim to the money.

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