[Dora]

depends… verbal agreements are also contracts

[Tony]

Without any written evidence or agreement in place you unfortunately just gave him a 40k gift.

[Leonard]

If you do decide to write it off, be sure to file a 1099-C (Cancellation of Debt) with the IRS.

It will force him to pay tax on the written off debt (Kinda like he had $40k in income since he essentiall did).

A great way to get back at someone who owes you money!

[Mark]

Check with a lawyer, but if you don’t have it in writing, then the answer is probably no.

[Joel]

If you have exhausted all avenues, like court, and you just want revenge then, assuming you have his info—like his SSN and some kind of agreement or at the very least receipts for the vehicle, you can file a 1099c on him which is a way to discharge debt.

This makes it so the IRS will then come after him for taxes on this “income” which will likely also place him in a higher tax bracket.

If he can’t pay the taxes on the amount, he will probably get audited and dragged around a good deal.

The discharged debt is gone, and ‘you’ are able to write it off on your taxes, which is a way to recoup at least part of it.

On 40k that is a fairly big chunk of change to have a 1099c filed on you—this could really piss him off and all bridges would be burnt to cinders

[Samantha]

How was the money exchanged? Do you have any communication with him where he admits to owing the money, just hasn’t paid yet?

If not, get it. Then see a lawyer.

[Leeann]

Depends on your state law re oral contracts. Get some written acknowledgements (eg text messages wherein he admits he owes you) as further evidence, as well as the trail of money coming from your account, going toward his car payment…. Sue.

[Shannon]

Has he at least made any payments to pay you back? If so that could be that proof you need

[Tia]

I would start texting him to have a written track record and then take it further if he doesn’t pay up.

Something like:

Hey,

I understand you’ve been going through some difficult times and haven’t been able to repay me for the money for your truck yet.

I do want to get a plan together for repayment though. When do you think you’ll be able to have the $40k back to me?

Talk through details in text, figure out a plan you’re happy with, and when he ultimately doesn’t pay up, take it further with your texts as reference.

[Sarah]

Submit it to your small claims court. I’ve never don’t it, but I’m pretty sure you don’t NEED a lawyer to do this.

[Brian]

You will have to file suit and get a judgement against him that you can have a court enforce.

Any proof you have that it was a loan and not a gift like text or voicemails will be key.

[Jason]

If he claims the $40k was a gift, then can’t the OP report the gift and force the recipient to pay taxes on the amount in excess of the allowed amount?

[Shannon]

Start making copies of text messages where he admits to owing you the money or implies that he owes you the money by conversing with you as if he owes you the money.

[Author]

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