Anonymous
Anonymous asked in Politics & GovernmentLaw & Ethics · 6 years ago

What is the best type of contract to make legally binding my friends debt?

My (former) friend got into a car accident due to driving drunk in my vehicle on a suspended license(which I knew nothing about). I understand that I am responsible under my insurance but she offered to pay the fine--in Alaska they apparently tack on an additional $1000 on the vehicle storage cost for a drunk driver driving--and the deductible on my insurance of $500. I agreed to let her pay over 7 months at $250 for 6 months and $100 on the 7th month starting 10/15...one month from now.

What type of agreement do I create and make her sign to make this legally binding? She has handled things badly so far and is behaving immaturely and doesn't appear to be responsible according to speaking with her other friends so I am trying to make things as airtight as as I can should I need to take this to court.

Thanks in advance!

Update:

I already have talked to my insurance company. They agreed to pay impound storage, repairs or replacement but not the 1000 or Deductible.

Update 2:

I really wish people would read carefully, we are in the process of making an agreement. I want something more than verbal in case I need to take her to court. She just got out of jail for the DUI yesterday.

Update 3:

There were no victims(except my pockets), just damage to the car mostly.

Update 4:

There were no victims(except my pockets), just damage to the car mostly.

6 Answers

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  • 6 years ago
    Favorite Answer

    I Jane Doe hereby agree to pay John Smith the sum of $1600 as restitution for damages to his car and loss due to impound. I shall pay it starting 10/15/2013 in $250 increments for six months with a seventh month of $100. If I fail to pay, a $50 penalty shall be issued for that month and I shall pay the money owed plus the $50 penalty on or before the next payment due date. In all cases the entire amount shall be paid plus any penalties no later than 1 JUL 2014.

    In return John Smith agrees to hold Jane Doe blameless for any addition costs that may arise due to the accident and impound. $1600 plus any penalties shall be the most required of her for this accident and I shall not seek any further payments or compensation.

    _________________________Her signature date

    _________________________your signature date

    _______________________Witness

    __________________________Witness.....

    (If you both sign in front of a notary you do not need witnesses. the notary is your witness and they keep a record of the event.)

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  • 6 years ago

    A contract to pay a debt is called a Promissory Note. There isn't a 'best type'. Either is is a Promissory Note or it isn't. That said, the note may prove you case in court, but is doesn't actually help you collect. Even with a judgment and a garnishment order, this doesn't sound like a person that will have anything you CAN take.

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  • 6 years ago

    Have your former friend sign a promissory note as suggested by some of the contributors but do not under any circumstances agree to hold your former friend blameless. You are going to be sued by the accident victims for sure and you will need to keep open your ability to sue your former friend for all the injuries and damages to others that you are now responsible for.

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  • Anonymous
    6 years ago

    Do not do anything until you talk to your insurance company. They may not cover this since it was not you driving and the driver was violating the law. That means that in addition to the fine etc you could be personally responsible for the damage to both cars plus any harm done to people in the other car. You might need a lawyer on this.

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  • Paro
    Lv 5
    6 years ago

    Notarized promissory note and do it ASAP while she's willing to pay you. I have run into this situation so many times where I had loaned a friend money, he lost it, said he would pay me back but as time passed, he decided he was no longer accountable.

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  • 6 years ago

    This sounds like case for Judge Judy...

    if she is not making payments

    why would she agree to sign contract at this point in time?

    you may just have to eat this one

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