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From the AARP Bulletin Print Edition, April 1, 2010
Q. A few years ago, we took out a $35,000 home equity loan to help our daughter get out of debt. She signed a contract and agreed to pay us $300 per month. She has never made one payment. Do we have any legal recourse?
A. You can sue your daughter for breach of contract. As with any lawsuit, though, the problem may not be in getting a court judgment against her, but in collecting. You may need to garnish her wages or her bank account. A legal services attorney can help explain what you need to do, or there may be an elder law hotline in your state that can walk you through the necessary steps.
Source: Jean Setzfand, AARP
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