Breach of contract for loan

[johnnyham89]

What is the name of your state (only U.S. law)? Texas

I'm doing this on my father's behalf. 1/9/08 and 3/20/08 are when both contracts were made. They are basically the same except the one on the 9th is for $35,000 and the one on the 20th is for $19,000. Both contracts included an interest charge of $7,000, so a total of $54,000 for the loan and $14,000 in interest. The contracts are made with this man's business whom which he is the owner of and states that his company will pay back the 35k plus interest no later than 6 months and pay back the 19k plus interest no later than 90 days in the other contract. My father has the original Certificate of Ownership for this man's business and a Texas Ordinary Certificate of Acknowledgment which are both signed.

What should be my father's first steps in taking legal action against this guy?

If there is any information that I am forgetting, please let me know and I will post it as soon as possible. Also if this is in the wrong section could someone please move it. Thanks

 

[justalayman]

has dad considered asking the guy for the money?

You might want to check on any usury statutes for Texas. Might be a problem. I haven't looked

I looked a little. Definitely looks like a problem.

 

[johnnyham89]

has dad considered asking the guy for the money?

You might want to check on any usury statutes for Texas. Might be a problem. I haven't looked

I looked a little. Definitely looks like a problem.

Yes he has numerous times and the guy keeps on making excuses. Since the interest would be a problem I think my father would be fine with just getting what he let the guy borrow.

I read here http://www.usurylaw.com/state/texas.php that there's a chance that the contract can be voided or that the interest rate can be revised. Would this matter if my father is just trying to get back his money without the interest?

 

[justalayman]

Well, it seems dad is relegated to suing the business/owner so when this goes to court, it is kind of hard to hide the usurious interest from the court since they are going to have to read the thing. Then it will be up to the debtor to make an issue about it and the judge will decide what happens.

 

[johnnyham89]

Well, it seems dad is relegated to suing the business/owner so when this goes to court, it is kind of hard to hide the usurious interest from the court since they are going to have to read the thing. Then it will be up to the debtor to make an issue about it and the judge will decide what happens.

Thanks for the help!

We're not going to try and hide anything but is there a way to just get the money back without the interest since it is probably not at a legal rate?

 

[justalayman]

sue for the principle and no interest or a legally allowed interest and hope the judge accepts the story that you didn't know about the usury laws.

as well hope the debtor doesn't know about the laws either and attempts to have the contract voided due to the interest.