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File for judgement.she will have to defend how she came into this money when she was stranded and needed financial aide. She contacted YOU. Ergo...She will need to explain how in her defense it was a gift...
How many ppl call up and say I'd like a gift of $1500.
You have recourse.
Yep! And.....if you claim the debt as a loss, she must report it as income! A debt forgiven becomes income to the debtor. If you want to really mess with her, just don't tell her you wrote it off. Its not your obligation to chase after people and tell them what their taxable income is. Usually the IRS takes its sweet time going after unreported income. By the time they catch up with her, the interest, penalties, etc will probably be much larger than the original borrowed amount
MANY financial advisers advocate that if you loan money to someone, plan on it being a GIFT or don't loan it to them, regardless of circumstances.
YOu CAN write it off as a "bad debt", and send her a 1099 form to the IRS and to her, and SHE will have to pay taxes on it, but do you really want to do that?
A better plan is court, BUT: you have to PROVE it was a loan, and that she agreed to pay it back. Can you prove that? You MIGHT be able to if she was in a bind and needed it desperately, and you agreed to LOAN it to her to get her out of the bind...
But, If her impression of you is that you are "rich" and "can afford it", you are NEVER going to see that money again.
What you CAN try, is that to tell her you will make a $25/m payment arrangement with her or you will take her to court and have her income garnished. That MAY put some starch in her pants, maybe not.
If it doesn't follow through and file for court. You stand a fifty-fifty chance of getting a judgement, but since she doesn't have the money, you will have to garnish her wages, a plan that is often leading to a dead end, as it is often hard to enforce. SHe apparently also doesn't have property, or you could lodge the judgement against her property as a lien to be paid when/if it is ever sold.
People who need money and have to borrow it usually don't have the where with all to pay it back.
Best bet is to chalk it up to experience and move on.
Sorry.
That is a whole lot of work, chasing her down to get served, MORE MONEY OUT OF YOUR POCKET - you need to pay for filing and a server. Never mind the time you will have to put in, there is nothing in writing etc. My job in college was to do small claims for an attorney. Had a degree as a paralegal. If she has no money, you spend months if not years chasing her around to garnish bank accounts for basically nothing, that she will just close after the first withdrawl.
Why walk away when you can do something with minimal effort on your side?
Tell her you are sending her a 1099 and she'll have to pay taxes. And the IRS will be after her. Off your plate and she now has a issue on her hands with the IRS. Give them as much info as you can, phone number, parent's address and phone numbers. Anything you know. We've been done this with a CPA's blessing.
Are you a guy? Did you sleep with her? Did you sleep with her after giving her the money? Did you give her ANYTHING after giving the money? If the above is all NO, then sue.
Are you a guy? Did you sleep with her? Did you sleep with her after giving her the money? Did you give her ANYTHING after giving the money? If the above is all NO, then sue.
Although the OP asked for advice on how to get her money back she seems to be okay with accepting the loss and not taking any formal action to recover.
I had a friend that lost her husband and there was quite a few business deals that needed to be settled. A few of them thought that they would just ignore her requests. Ah, bad move. She sent Vinny with his baseball bat. She got paid.
I would play poker with that dead beat and harass the heck out of her. I would also send a male friend to whisper something in her ear. Make it worth her while to pay you back. I would definitely file a claim in small claims court. Nobody wants to receive a summons. Tell her that it could affect her credit rating. I did that with a contractor. I was on him like white on rice until I won the judgement. I only collected about 300 before he filed bankruptcy on the rest, but at least he's out of business now, and out of our state.
Make her life miserable. I wouldn't cave in and chalk it up to bad judgement. I had bad tenants a couple of times that I needed to get rid of. I got one out before her lease was up and she never asked for her security deposit back. There are ways to make peoples lives miserable. Sometimes you just have to be creative. I've been a landlord since 1992 and I've never lost a dime or had to go to court to evict anyone, but that money I lost to the contractor was a long term employee. That taught me a hard lesson and I'm sure you've learned from your mistake too F.A.
All pretty much the same advice....as someone said, "wash, rinse, repeat" but, still good advice.
It's over. Done. Don't do it again. End of story. You obviously have a good heart.
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Bad decision move on not mucg chance of getting your money back OP.
