promissory note drama

[TANYA D. TAYLOR]

I lent a small amount of money to a friend and my friend agreed to sign a promissory note promising to repay the loan by February of 2001. Well, the money is slowly being repaid, but has not been paid in full as of yet due to some delinquincies during some of the due dates. What is the first thing that I should do?
I forgot to add that I live in Missouri City, TEXAS


[Edited by TANYA D. TAYLOR on 01-06-2001 at 04:51 PM]

 

[JenniferH]

If promissory note is not Paid in full by due date. File claim in court. Depending on the amount (you say small) you could possibly file in Small claims court. If a judgment is awarded to you, you then have right to full legal collection. Depending on your State laws you may be able to collect in the following ways: bank levy/garnishment, wage garn., property liens, etc.

Please take note: the red letters on the top of the page request that you post the state your are in.

(this way we can better answer your questions.)

 

[JETX]

Tanya, a few cents worth....

I understand from your post that the promissory note is not really overdue since it is not required to be paid in full until next month (Feb 2001). Until then, there is little you can do.

If the promissory note provided for scheduled payments, interest and a penalty or late fee (in the event of late payments), then you could also collect for the unpaid fees and interest. However, if the note did not specify payments, and fees, and/or interest, the fact that they individual payments were late is not recoverable.

If the note is not paid by the 'deadline', then you might need to consider taking action against the debtor (in Ft. Bend County Small Claims).