Loan default - 2 individuals

I am an executor of my late mother's estate. My mother sold a tractor to a couple that signed a loan agreement where the loan was to be paid in full by December 2010. It has not been and recent written correspondence from the borrower indicates they have no funds to pay the estate and are not able to secure a loan to repay us either. They have offered to the estate the following: pick up the tractor from our property for full discharge of the loan. Details: The loan was signed in New Brunswick; current balance is just over $30,000 Cdn; borrower was paying $100 per month over last couple of years (basically interest); borrower lives and I believe works in Grand Prairie Alberta but has land/property in New Brunswick where the tractor is currently located; the tractor is likely worth only half of the loan balance. My mother's estate was probated in Ontario - my sister who lives in Ontario and myself are the 2 executors (I live in Alberta).<br />Is this worth pursuing legally? What legal solutions are there for the estate and what are the likely legal fees to address this?<br />Thanks

Asked over 7 years ago in Alberta
Categories: Contracts  Small Claims  Wills, Estates, Trusts

Answer Now

Katherine MacRae

Answer by Katherine MacRae

VerifiedAlberta lawyer

You would have to sue where the contract was entered into (the place the contract to sell the tractor was made).  In Alberta, you only have two years to bring an action, so you may or may be out of time, depending on the statute of limitations in each province.  Not evnough facts are present to determine when the statutory time limits start running. 
If you intend to take any action, it sholuld be pursued immedately.
Whether or not it is worth it depends on whether you think it is worth walking away from a $30,000 debt. 

Posted over 7 years ago

Please note that this is for informational purposes only and does not constitute legal advice to you. Legal advice pertaining to your particular situation can only be provided by a lawyer who has met with you to obtain all pertinent background information necessary to give you a formal legal opinion. For formal legal advice, hire a lawyer (many give a free first consultation). Contact Katherine MacRae, or search the Lawyer Directory.

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