advice on lending to family

DottyM01

I have lent money to my niece in the past and none has been repaid. She is now in rent arrears and will be homeless with her partner and 3 children so I feel I must help.
I want her to repay the money I will lend her and the money she owes me from previously. So I think some type of legal contract is needed, one that means I will have legal recourse should she not repay all the money loaned.
I am not looking to put her in financial hardship so apprciate that it will take a long time for her to repay. I do want her take rsponsibility for her debts.
So I am asking where might I find a legally binding contract that I can use etc
I know it would be wiser to not lend the money but there are children involved.So please no comments about not lending it.
many thanks



Thank you everyone for your replies. You are right, if I give the money realistically I am not going to get it back. She sees me as a soft touch.

Sea_Shell

I won't tell you not to GIFT, but if she doesn't have the money to repay, she doesn't have it, legal agreement or not!

Edi81

It’s a shame that there are children involved.
Gift her the money - you have done previously as you aren’t getting that money back.

couriervanman

"Advice on lending to family".........Don't unless are prepared to almost certainly lose it
Does your neice regard you as a soft touch surely she has other family members to ask.......or has she already exhausted those options

sourcrates

Unfortunatly legal agreements are not worth the paper they are written on, she has already shown you her true colours, why would you expect a piece of paper to make any difference, think neville chaimberlain here.

All a legal agreement does is give you rights to sue that person through the courts to recover any money that falls due, if she hasnt got the money, your just wasting everyones time.

She sounds like a wind up merchant, tapping her auntie/uncle for more cash, using a few good lines, try not to be a doormat would be my advice, where are her parents in all of this ????

jonesMUFCforever

This is a bottomless pit which she will never get out of because she has family that throw money at her.
You will NEVER EVER get money back from people like this.

So up to you - if you can afford to give the money away then do it - if you only want to lend her the money - don't do it as you will never see it again.

dealer_wins

Politely decline, if youve helped before and not been repaid youve done your bit.

If you really want to help gift it, because you have zero chance of being repaid.

Jami74

If you do decide to give the money maybe pay the rent directly for them. I know people who have been given/lent money to help save their home but decided to spend the money on something else and still lost their home.

The other thing to consider is, how do you know they'll be able to pay their rent going forward? Will you need to keep on paying it?

Sncjw

She has a history of not paying you money back. Now she is in rent arrears so that’s more money she isn’t paying back to someone. Yes she has kids but could she not seek help from the father of the kids what about the partner supporting her.

You say no comments about not lending it so your just asking for things you want to hear.

AnotherJoe

You might be keeping them out of social housing by bailing them out for a few weeks, and where does it end? Will you subsidise them until the youngest child is 18 ?
As for a legal agreement, there's a phrase that covers that "can't get blood out of a stone". What would be the point if they have no money ?

DCFC79

DottyM01 wrote: »

I have lent money to my niece in the past and none has been repaid. She is now in rent arrears and will be homeless with her partner and 3 children so I feel I must help.
I want her to repay the money I will lend her and the money she owes me from previously. So I think some type of legal contract is needed, one that means I will have legal recourse should she not repay all the money loaned.
I am not looking to put her in financial hardship so apprciate that it will take a long time for her to repay. I do want her take rsponsibility for her debts.
So I am asking where might I find a legally binding contract that I can use etc
I know it would be wiser to not lend the money but there are children involved.So please no comments about not lending it.
many thanks

Why is she in rent arrears ?

Will she be in rent arrears again ?

At what point will you stop bailing her out ?

Is she working, claiming the right benefits if shes entitled to any.

What woild happen if you dont lend the money ?
Woild the council not house them or would the fact thrres rent arrears be a factor in the decision.