If I can give everyone here some words of advise, I would say creating contracts with everyone you deal with financially is a necessity.

If you have some business/monetary relationship with anyone, then if you don't have a contract with them, you are absolutely crazy. If someone wants to borrow money from you, then the FIRST step is to create a contract where you both sign to officiate the terms of it and most importantly, the repayment of it.

Doesn't matter who is it. Family, friends, etc. If it involves money, then create a contract. Some will bitch at you, call you uncaring or selfish, or whatever. Doesn't matter... get it all on paper.

This will save you untold stress in the future. Believe me.