#ExBFF #loanrepayment #IRS #lostfriendship #toxicrelationship
Ex BFF Refused to Pay Back Loan, So I’m Making Them Pay the IRS
Right before the pandemic hit, I had left an abusive relationship for good and moved back to my state to stay with one of my longtime BFFs to get back on my feet. This was someone who was like a sibling to me for 15 years. We went through the highs and deep lows in life by each other’s side.
My ex-BFF failed to pay back the loan she owed me, resulting in a difficult situation that eventually led to me involving the IRS to make her pay what she owes. Here’s how it all unfolded:
### The Loan and Broken Promises
Once everything was shutdown, all my work (freelance and side hustles) dried up. It wasn’t until summer that freelancers were included in all Covid relief and I was eligible for unemployment. The same time, my BFF was transferred to another state, but only for one year and then back.
They weren’t eligible for unemployment because they were still working remotely on reduced pay and hours, but they claimed they didn’t have enough money for the move and their relocation package was only $500, so I lent what money I had to help with the cost of the move. Once we got to the new state, friend needed a car to get back and forth from work instead of ridesharing, so I lent them more money to lease a car.
### Broken Promises
I started working underneath them and brought up the loan, they agreed to start paying it back in chunks. By the end of the year, they had only paid back $400 and told me they were getting a nice EOY bonus for how well the store performed and would be able to pay me back in full after the new year. We agreed March was the deadline.
By February, I was asking if they gotten said bonus. “Oh, I haven’t gotten it yet, I’ll let you know.” Meanwhile, they had been dating someone toxic af and were never around, and started being distant via text with me and other mutuals.
### The Betrayal
March arrives, ex-BFF informs me they’ll be transferred back to their old store and we can move back to where we came from and later informed me they’ll have to pay me back later bc they had to pay off a bunch of credit debt. Later that month, a mutual friend was hanging out and ex-BFF told them about the move back, except they said “I’m moving back” before quickly correcting to “we’re moving back.”
April arrives, ex-BFF had to travel to old store for a week to get work things settled. I catch them when they’re back and ask about the plans. In rapid succession they reveal that they’ve completely screwed me. “I found a one bedroom condo. I’m not taking any of the furniture. You can find a nice place for probably $1000/mn. Oh, I’m ending the lease here two months early, you have to be out by June. You can keep working at the store here if you want.”
### The Consequences
After several attempts in writing to ex-BFF for repayment, I considered small claims, wrote up a demand letter and organized all the paperwork. All their social accounts immediately went private.
After a month of no response, I considered the time and money it would require to recoup my losses, so I decided this doesn’t have to be *my* problem any more. They’ve been sent a 1099C for cancellation of debt. They don’t want to pay me, fine, they can pay the IRS since they kept my loan as income. I have all the receipts I need to prove the loan and repayment terms, and they know that, too.
### Conclusion
This experience was tough and taught me valuable lessons about trusting the wrong people and standing up for what I’m owed. If you find yourself in a similar situation, here’s what you can do:
1. **Keep All Records:** It’s crucial to keep a record of all transactions and agreements.
2. **Communicate Clearly:** Clearly communicate your expectations and deadlines for loan repayment.
3. **Seek Legal Options:** If all else fails, consider small claims court and sending a demand letter.
In the end, it’s important to stand up for yourself and take the appropriate steps to protect your rights, even if it means involving the IRS to get what you are owed.
Small claims court
Hate to break this to you but the non-paid debt is treated as income by the IRS so they will only have to pay tax on it.
Needs a tldr
Excellent! Most people will do what ever they have to, to keep the IRS out of their business. Well played
Do you need the other person’s ssn for 1099c?
Unless you had them sign an enforceable loan agreement when you lent them the money, the IRS isn’t gonna get them for anything as, for tax purposes, there was no debt to forgive. “Keeping the receipts” won’t get you anywhere.
You might have better luck with small claims court.
Take em on Judge Judy
LOL….that is **excellent**! You sent a copy of the 1099C to the IRS as well, right?
Small claims doesn’t really cost more than the filing fee (my state is like $40 but you can get a waiver if you can’t afford that, and/or add it to your claim) and maybe a fee to serve them if you go through the Sheriff’s Office(this was also around $40 on my syate). You don’t need a lawyer for small claims, so no cost there. The paperwork is maybe a couple hours worth of work depending on your state. If your ex BFF doesn’t show to court, and you properly served them, the judge will still make a decision. If you have all the reciepts it should be an easy win for you. Probably should reconsider not going to small claims.
The best advice I ever got was to never lend money. Gift the money and preserve the relationship. If they ever get in the position to gift it back, all the better. At least you don’t blow a relationship over money.
Oh hell yeah… I hope everything works out in your favor
Don’t forget to sign them up for porn and church services.
You both sound awful
You sound like the problem.
Sounded like the appt was in her name. I’d have overstayed the lease for a few months, and she would have to pay.
I hate to spell this out for people but in all honesty most people on here are assholes who do super weird shit to people some of which isn’t remotely petty it’s actually assholeish
This guy scams the IRS pretending he gave income to some and admits it online weird
Also never take anyone for face value people will always fuck you over 1 way or the other
This guy could just be giving someone income through a business and be pretending to be pretending its a loan cause buddy was told it was under the table and he got caught after filling it and buddy is now pissed
IRS will get em. Thugs and cartels have nothing on the IRS.
So, what do you gain from this? I’d rather go after the money with late fees.
I wouldn’t move out of the apartment…it’s under your friend’s name correct? She can pay the back due rent (equivalent to what she owes you)…