Deadbeat Debtors

[QSEQB6]

What is the name of your state (only U.S. law)? TN
I loaned a couple $40K 18 months ago with a notarized promissory note. They agreed to make monthly payment, and they did for about 18 months. Right before the loan repay date they got into some family issue. Long story short, they are now separated and "can't pay me back". They still owe me a balloon payment of $36K with interest. It seems to me they are just leaving me hanging.
What legal options do I have to fight them? Is small claim court even possible, and if yes, where do I begin? I'm mad at the fact they use this family to avoid paying me. Right now I can't even get them to talk to me.

Is there a way to put a lien on their house now? What will that process involved and what do they need from me? Where do I file the lien?

 

[Zigner]

What is the name of your state (only U.S. law)? TN
I loaned a couple $40K 18 months ago with a notarized promissory note. They agreed to make monthly payment, and they did for about 18 months. Right before the loan repay date they got into some family issue. Long story short, they are now separated and "can't pay me back". They still owe me a balloon payment of $36K with interest. It seems to me they are just leaving me hanging.
What legal options do I have to fight them? Is small claim court even possible, and if yes, where do I begin? I'm mad at the fact they use this family to avoid paying me. Right now I can't even get them to talk to me.

Nope - you're in "real" court now (not that small claims isn't "real" court). Even worst is if you DO get a judgment, they can simply declare bankruptcy and you're SOL.

 

[quincy]

What is the name of your state (only U.S. law)? TN
I loaned a couple $40K 18 months ago with a notarized promissory note. They agreed to make monthly payment, and they did for about 18 months. Right before the loan repay date they got into some family issue. Long story short, they are now separated and "can't pay me back". They still owe me a balloon payment of $36K with interest. It seems to me they are just leaving me hanging.
What legal options do I have to fight them? Is small claim court even possible, and if yes, where do I begin? I'm mad at the fact they use this family to avoid paying me. Right now I can't even get them to talk to me.

You can sue the couple.

Following is a link to Tennessee's Rules of Civil Procedure, which you will want to become familiar with if you decide to file a lawsuit without help from an attorney in your area (although you would be smart to have an attorney assist you).

http://www.tsc.state.tn.us/courts/supreme-court/rules/rules-civil-procedure

Even if a court finds in your favor (and it sounds as if you have a good case), collecting on the judgment could be difficult. I agree with Zigner.

 

[Legalsetgo]

I do not know what a real court means. I never knew we had fake courts. Yes you may get a lien if you can prove to the court this action you bring has merits. I caution to remember homestead laws of individuals states which exempts real property . Zinger is right, a bankruptcy would cause you to be "SOL".

 

[Shadowbunny]

I do not know what a real court means. I never knew we had fake courts. Yes you may get a lien if you can prove to the court this action you bring has merits. I caution to remember homestead laws of individuals states which exempts real property . Zinger is right, a bankruptcy would cause you to be "SOL".

Since you seem to be a perpetual fount of useless info, why do you continue to post just to say that other posters are right?

 

[PayrollHRGuy]

Since you are quoting Zinger twice you might just want to actually read what he wrote.

 

[Just Blue]

I do not know what a real court means. I never knew we had fake courts. Yes you may get a lien if you can prove to the court this action you bring has merits. I caution to remember homestead laws of individuals states which exempts real property . Zinger is right, a bankruptcy would cause you to be "SOL".

Post the TN stat that could preclude a lien on the debtors home.

 

[adjusterjack]

Post the TN stat that could preclude a lien on the debtors home.

There isn't one.

And a bankruptcy wouldn't make a creditor SOL because the TN homestead exemption is only $5000 ($7500 for joint owners). It gets a bit higher for people over 62.

Even a small amount of equity could put a home at risk.

By the way, Legalsetgo, it's Zigner, not Zinger.

 

[Just Blue]

There isn't one.

And a bankruptcy wouldn't make a creditor SOL because the TN homestead exemption is only $5000 ($7500 for joint owners). It gets a bit higher for people over 62.

Even a small amount of equity could put a home at risk.

By the way, Legalsetgo, it's Zigner, not Zinger.

I know...That was my point to legalsetgo.

 

[quincy]

You can sue the couple.

Following is a link to Tennessee's Rules of Civil Procedure, which you will want to become familiar with if you decide to file a lawsuit without help from an attorney in your area (although you would be smart to have an attorney assist you).

http://www.tsc.state.tn.us/courts/supreme-court/rules/rules-civil-procedure ...

Here is the link I provided earlier that was replaced by a box with the forum changes:

http://www.tsc.state.tn.us/courts/supreme-court/rules/rules-civil-procedure

Zigner's name is being spelled incorrectly, by the way. It is "gn" not "ng." Edit to add: Adjusterjack beat me to it.

 

[LdiJ]

I think that the thread is getting a bit fragmented and therefore you are not getting complete advice.

You need to sue them for non payment of the debt. You need to get a judgement against them. This cannot be done in small claims court because the amount of money they owe you is too high for small claims court.

Once you get a judgment against them you can pursue options for collections of that judgment including finding out whether or not you can put a judgment against their home or any other assets they might have.

Yes, if they file bankruptcy its quite possible that you will be SOL. Its not guaranteed but its quite possible.

 

[quincy]

T

I think that the thread is getting a bit fragmented and therefore you are not getting complete advice.

You need to sue them for non payment of the debt. You need to get a judgement against them. This cannot be done in small claims court because the amount of money they owe you is too high for small claims court.

Once you get a judgment against them you can pursue options for collections of that judgment including finding out whether or not you can put a judgment against their home or any other assets they might have.

Yes, if they file bankruptcy its quite possible that you will be SOL. Its not guaranteed but its quite possible.

The advice was complete. You nicely consolidated what had been previously said, though. That helps.