My ex-roommate got a big back payment for his SSDI and gave money as a gift to our other roommate to get a car so he has a vehicle to go see his daughter with no contract signed saying he had to pay that money back. The ex-roommate gave it all in cash and his name is not on the bill of sell or title for the car. He is now upset and saying that he has to pay all that money back now and is saying if he does not he is going to have him taken to jail for it. Can he do this? Or what should we say or do?
Answer
A creditor cannot have a debtor jailed for non payment.
Whether this was a loan or gift, is a factual question that a judge might have to decide. On one hand it sounds like a gift. But, proving that money you got from a disabled Pierson was always intended to be a gift, can be tough to prove as a defense.
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