QUESTION
back in 2009 i borrowed some money from my ex husband i signed a piece of paper saying i would pay it back by a certain time and if not then
Asked on Jul 29th, 2013 on Civil Litigation - Arizona
More details to this question:
20% interest would be accrued. signed by both of us and notarized. no legal contract or anything like that. What recourse does he have in the state of arizona? He is upset because of a decision the courts made against him in not paying child support for two years and now he wants to collect on that agreement.
1 ANSWER
You say that there was no legal contract, but, apart from the interest rate, it seems like a perfectly binding legal contract to me. Your ex-husband could sue you for breaching your loan agreement, and could get a judgment against you for that amount. However, in some states, 20% annual interest would be above the maximum legal interest rate. I do not know the legal interest rate in Arizona, but if it is less than 20%, the whole agreement (and certainly the agreement to pay interest above the maximum legal rate) might be unenforceable.
Answered on Jul 30th, 2013 at 2:19 PM