I find myself in an awkward situation, and I’m at a loss as to what to do. I’m interested in the collective wisdom of the Dope as to what others would do in this situation, and what you lot think my options are.
I could make this a really long OP outlining the rather complex relationship between the two parties involved, but I’ll attempt to keep it brief.
I have a friend that I am very close to. (Or was until all this happened). He lives in the US, I live in the UK. He was very supportive at the time when my marriage broke down, invited me over and so on, and yes, there was sex involved. A few months after all that, he came to me for a loan. His story was that his soon-to-be-ex wife was dragging her heels over the divorce settlement, and he had a temporary cash flow problem until she paid him his share of the value of their house. I had no reason to believe that this was anything other than the truth; he was absolutely, definitely coming into a substantial sum of money in a few months.
At the same time, I had released equity (£35000) on my property to do refurbishment work. This work couldn’t start until communal repairs were organised on the apartment block, so I was temporarily cash rich with my equity sitting there. Of course, I am now paying a higher mortgage on this amount.
So it made perfect sense for me to transfer $10000 to my friend (£5120 at the time). One seventh of my equity. After all, I would get it back when he got his divorce settlement in less than six months time.
That was three years ago, and I haven’t had a penny back. Apparently, the house wasn’t worth what he thought it was, he got shafted in the divorce, yadda yadda.
I went ahead with my refurbishment work with a new budget. We are still speaking, but things are obviously a little strained.
It’s now over three years since I loaned him the money. I have pointed this out, and he just says he’s really sorry, but he just doesn’t have the cash and there’s nothing he can do about it.
So what do I do? Are there any legal angles available to me? (I have the full email correspondence that clearly shows this as a loan, with an agreed repayment schedule.) I could put pressure on him, but if I alienate him altogether, I’ll never see my money back. I wish I could turn back time and not do it in the first place.
Over to the Dope.