How can I collect debt on a Loan I made to someone

[red913]

I'm in califnornia and lent a little over $1000 to somone. I want a contract to be written up so that...well just in case ya know. Besides putting into the contract who owes who and how much is owed what else goes in there? Such as what happens if the debt is not paid back in X amount of time, what kind of actions can I then take that would be listed in the contract?

[draygnmage]

a contract would have to have the principle amount owed, the interest being charged on the loan, the payment amount and due dates, the penalties for non-payment or late payments, etc. You can get a copy of a loan agreement on the net and use that as a guide. Also, make sure that both of you are legally able to sign the document and that it is witnessed and notarized. That should make it a legal and binding note. If you plan on letting your friend borrow more before paying this loan off, you'd want to look more at credit card agreements than notes.

[Chien]

Google (promissory note)+California in “advanced search”

You’ll find free samples that you can download or copy and that should be more than sufficient and enough information to modify them further, if you have special needs.

[draygnmage]

Thank you! Promissory note. Ever have one of those moments where you know what you're trying to say and all you can do is describe it and pray that someone figures it out? I couldn't remember that phrase to save my life. LOL

[Chien]

Ever have one of those moments where you know what you're trying to say and all you can do is describe it and pray that someone figures it out?

Pretty much sums up my days.