Repayment of loan via promissory note overdue

[glucas]

Hi -

I live in Washington and gave a company that a friend of mine was helping to start up in Arizona a few thousand dollars, within the means of a signed promissory note. The repayment was due within a year, but I signed an amendment that extended it for another year. The second anniversary of the original loan was last fall, and I have not received the loaned money or the associated interest I was to accrue yet.

This month, the owner of the company said the company is out of money. My friend left the company a few months back, but says there is something else strange going on. My question is: what is the best path forward for me to recoup my money? I have never been in any situation even close to this before, so knowing my options would be extremely helpful.

Thanks in advance!
-Greg

 

[HRZ]

Your option is to sue the borrower in the correct jurisdiction...but if you prevail, that is likely merely to give you a hunting license to find assets ..and if the company is about to go under or there are 15 other creditors in line ahead of you..your recovery outlook is bleak.

Is the loan to company backed by any personal guarantees ?

get as much information from your friend as possoble about company finances and whatever else is going on.

 

[glucas]

ok thanks, I don't think there is a personal guarentee

 

[adjusterjack]

I live in Washington and gave a company that a friend of mine was helping to start up in Arizona a few thousand dollars,

That's right.

You "gave" the money.

Don't expect to ever see it again.

 

[glucas]

Thanks for your input