Hello, I have a question regarding loaning money to a family member.

Basically, I got some money when my father passed away. A few months later, my stepfather, whose business had suffering post-911, asked if he could borrow $20k, advising that he planned to pay it back in a few weeks. I said yes, and easily wrote him a check for the money. I believed him when he said he would pay me back, and at the time, the money was sitting in my account not being used, and here was someone who needed it. A week later, he asked to borrow another $11k, again saying he would pay me back in a month. I gave it to him, no questions asked.

This was in May 2005. I have not received a dime from him. His business, which he was using my money to try and save, ended up going bankrupt. He owes the IRS a lot of money and we lost our house. I moved into an apartment and he never mentioned the money. I recently got married and the rest of the money I received when my father passed away is gone. The $31k my stepfather owes me would make a nice downpayment on a home, or a cushion to use when I have children.

I don't ever ask about the money, because I am mostly embarrassed for him, as he lost his business and I know he doesn't really have the money. He is 62 years old and working under the table doing home improvement and painting with my uncle and I know he makes decent money. I have no idea what my recourse is to ever get this money back. I did not ask him to sign anything when he borrowed it. Am I SOL or do I have options?

Thanks for any advice!