I lend money to a friend, a neighbor, a colleague ….. What to do?

You have an interest in writing a letter, even between friends.
It justifies the remittance of funds, specifies the terms of the loan (interest rate or not, repayment terms …), and facilitates the recovery of the loan in default of repayment. This writing can take the form of a debt recognition or a notarized mortgage.

The choice between these two agreements depends on the size of the loan amount and the risk you expect to incur. If you opt for a debt recognition, the act can be established under private signature and in as many originals as parts. It must bear the written indication of the debtor’s hand of the amount due, in letters and figures.

Registration of the document with the tax authorities is optional. Its sole purpose is to give a certain date. It has disadvantages. If your debtor is recalcitrant, you are obliged to go to court to take protective measures, because it is a private deed.

On the other hand, having only the status of unsecured creditor, all other creditors, privileged and mortgages, are reimbursed first. If you preferred to establish a notarized mortgage loan contract, you will benefit from a mortgage guarantee.

Whatever the nature of the act, the following tax formalities must be carried out:

By borrower
– declaration of the existence of the loan,
– declaration of interest paid to the lender.

By the lender
– declaration of interest received on the declaration of income.

PEP has no information to give on people contacting the subscribers because the exchange between the different interlocutors (requestor – lender) is done automatically by means of a form accessible to all. Lenders are not registered and do not have an account.
As stated in the terms and conditions of sale and on the automated reply form, you must check the contact details and do not settle in exchange for a financial service. If you can not reach this person by telephone, this is suspicious.


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