Script loosely based on real people

zagoraz

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Here's a question for you...

Let's say someone wrote a screenplay with plans to direct themselves, and the screenplay was based loosely on the family of his or her spouse. The names were changed, but the basic characteristics of the family characters remained true to real life (i.e. the characters in the script have the same type of physical description, mannerisms, attitudes and jobs as the people in real life). Everything about these characters, including their house, the town they live in, etc is almost true to life --- but the story is completely fabricated. Do you think this writer/director faces any legal issues if he or she makes this film?