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Loan Payoff with Variable Payments

  1. #1
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    Loan Payoff with Variable Payments

    I am looking for some help with being able to enter data and be calculate a loans payoff with variable payments being made to determine additional charges that were incurred because the loan was not paid in full with the agreed upon monthly payments. Yes this will be used in a divorce case to show that the my party (MOVANT) paid additional monies on the loan because the REPSONDENT failed to pay full amount that was agreed upon. My client was forced to pay additional monies of the life of the loan because of his failure to pay the full amount. The court only see's $25.00 a month ($300.00 a year) not being paid for 5+ years, but I need to determine how much additional interest was charged my client because of that.

    What I know:
    Loan Amount is $8289.37
    Interest Rate is 8%
    Payment should have been $250.00 a month
    Loan originate date 07/20/09
    Pay off date was 2/20/15
    Loan payoff amount on 2/20/15 was $1200.30

    RESPONDENT only made payments of $191.00 instead of the agreed upon $250.00 In 2013 my clients payments to RESPONDENT went down to $225.00 a month but REPONDENT still only paid $191.00 towards loan
    ** a couple of times he only paid $100.00 or skip payments too adding to the length of the loan even though my client paid him her court ordered amount.
    See how complicated this gets. Court says we have to prove how much additional monies were paid by my client (short payments & INTEREST Payments) because RESPONDENT did not make full payments.

    Can someone help determine that.
    THANKS !

  2. #2
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    Re: Loan Payoff with Variable Payments

    Yes, it is complicated. I don't see how $25/month is determined if they only paid $191 out of $250 (a $59 difference). On top of that, how much of the loan went against principal vs interest? Was the interest tax deductible, and, if so, who benefited? Who received the asset once the loan was paid?

    Your best bet is to hire a CPA or some other financial analyst, since anything that is determined on this forum will likely be questioned by the other lawyer, and I don't think anyone here wants to get in the middle of some court proceeding and you don't want to try defending whatever this forum derived. That is why lawyers typically hire accredited professionals. You would then pass the analyst's fee to your client or try to get it from the other party (unlikely). However, since the analysis would likely cost more than any difference calculated from the rough estimate of $1500 over the 5 years, it may not be worth it.
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  3. #3
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    Re: Loan Payoff with Variable Payments

    Its very difficult you should be hire a charter accountant for this solution,because who knows that how can be adjust the difference of $59

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