What can I do if a family member owes me money?

Contacting the person or company who owes you money. Speak to the person who owes you money.
Using mediation to settle a debt dispute.
Using a solicitor.
Using a debt recovery agency.
Recovering debts through the courts.
Claiming online.
More useful links.

Can you take a family member to court over money?

To win a case, you need to have some evidence that your friend owes you money. This doesn’t have to be a written legal contract, with witnesses etc. Suing someone for money is a civil case and the judge will decide who wins “on the balance of probabilities“, looking at whose story seems most likely.

Who are the members of your extended family?

Your mother is your immediate family, but her father is your extended family. If you can trace a connection to someone, they’re generally considered part of your extended family. In some sense, the whole world is part of your extended family.

Why do people make assumptions about extended family?

One extenuating factor might be if your extended family member doesn’t have anyone else closer than you. People make assumptions about closeness when they hear that this person was your great-aunt or your second cousin. If that person doesn’t have siblings or their own children, you might be the next of kin.

Is the whole world part of your extended family?

If you can trace a connection to someone, they’re generally considered part of your extended family. In some sense, the whole world is part of your extended family. When the complexity of tracing the relationship becomes too great — think fifth cousins, for instance — people tend to stop thinking of each other as extended family.

How much money is loaned to friends each year?

Every year, over $89 billion is loaned between friends and families in the US, according to the Federal Reserve Board Survey of Consumer Finances. It takes a lot of courage or desperation to ask for money so before you decide upon whether to lend it to them or not, take some time to think about how it may affect the relationship.

Can a debt collector demand payment from a family member?

Debt collectors cannot demand payment from family or friends. It is illegal for a debt collector to try and collect a debt from a family member or friend that does not owe the debt. For example, if a spouse incurs a credit card debt, the other spouse is generally not responsible unless they were a co-signer on the debt.

Who is responsible for paying a family member’s debt?

Generally speaking, while you are alive, your relatives are not responsible for paying any debts you may have incurred. But there can be many, many exceptions to this rule. For instance, spouses may be responsible for each other’s medical debts depending on the state they live in. Photo by: John Lund/Sarto Harrison/Corbis

Can a family member come after a debt?

In other cases, creditors cannot come after your family for payment. Here’s what you need to know about what happens to various debts you may have — while you’re living, and even after you die. With intergenerational households on the rise, it’s not uncommon for aging parents or grandparents to live with adult children or grandchildren.

Is it bad to lend money to family?

There’s good reason to be cautious about lending money to family. If the borrower isn’t conscientious about repayment, you’re stuck between trying to get your money back and maintaining family harmony. But say you went ahead and did it.