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Being sued by a deceased friend's wife for a loan she says i didnt pay back

2 Answers. Asked on Aug 25th, 2017 on Debtor and Creditor - New York
More details to this question:
Is my business and/or license at risk? I own a business. A business associate/friend gave me a total of $150,000 ( 2 checks; we have copies) after he sold his separate business next door; we had a business relationship, the loss of which led to revenue loss for me. He said he realized that his leaving led to that (since then, my business has been in trouble for years) and he put a check on my desk and he said to take it although I him I couldn't pay it back. After some back and forth, he said to pay him back $600 per month which I have been doing. This friend passed away some time ago (about a year) and I have been continuing to pay $600 per month to his wife. The wife is now suing me for the full amount as if no payments were ever made. We've kept very poor records and I have been paying her (and him for that matter too) in cash. Can you provide at least the type of lawyer I need to contact? I have very limited financial resources and am wondering if legal aid is an option too.
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Answered on Aug 31st, 2017 at 6:02 AM

You need to answer the case.  As this deal was not documented by either side, you clearly have defenses.  It would not be that expensive to defend.

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Answered on Aug 27th, 2017 at 2:49 PM

The burden is on the person suing you to prove that the $150,000 was a loan and not a gift. It would help if you had better records, but it sounds as though the lawsuit is still quite defensible. Your former business partner admitted that his actions caused your financial losses. A good civil litigator can help you find and put together the evidence necessary to defend this lawsuit.  

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Just because you owe money to another person, a bank, credit card company, landlord or another party doesn't mean you've signed away your legal rights. Federal and state debtor-creditor laws explain both the legal rights and obligations of debtors (people who owe money) and creditors (those who are owed money). If you're being hounded by collection agencies and debt collectors, talk to a debtor and creditor attorney who can help you enforce your legal rights while also working to explore debt relief options. Your lawyer can discuss the pros and cons of debt settlement, garnishment, personal bankruptcy and other possible solutions.
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