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mdmlaw
mdmlaw, Attorney
Category: Business Law
Satisfied Customers: 101
Experience:  25 in general practice representing companies, suppliers, employees
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Two years ago I lend $50,000 to get some % monthly and the

Resolved Question:

Two years ago I lend $50,000 to get some % monthly and the whole amount back in 2 years. A promissory note was made and signed by the borrower. Now the borrower delays the repay of $50,000. What are my options? Thank you!
Submitted: 8 years ago.
Category: Business Law
Expert:  mdmlaw replied 8 years ago.

DearCustomer

 

Your rights will be governed by the promissory note, in large part. That is, provided the note was reasonable and within the law.

 

Can you tell me the material terms of the note? Does it provide the remedies in the event of a default?

 

Thank you.

 

Mary

Customer: replied 8 years ago.
It is professionally made Cognovit promissory note. At the very bottom it says: acknowledgment that: by signing this paper you give up your right to notice and court trial. If you dont pay on time and are 60 days late, a court judgemtn may be taken against you without your prior knowledge and the powers of the court can be used to collect from you, regadless of any claims you have agaisnt creditor wheter for failure on his part to comply with the agreement, or any other cause.
Material part: for value received the borrower promises to pay the principle sum of $86,000 without interest in installments as follows: $1500 in 24 monthly installments beginning on December 1, 2006 same day of each month thereafter and the remainder of $50,000 is due and must be paid in full by December 1, 2008.
Thank you,Mary!
Expert:  mdmlaw replied 8 years ago.

Hi:

 

I believe that you will have to sue for the money, even though the note says that he gives up his right to notice and a trial. In the event you want to try to attach his assets or bank account, or use any other legal remedy, you will need a court order, and this can only be obtained with a lawsuit.

 

However, your lawsuit should be very easy to prove, and you will win in the end.

 

You can use procedures to try to attach his assets BEFORE he knows about the lawsuit. Since you have a signed agreement, you should be able to obtain an Ex Parte Attachment, which is an attachment of his property (bank account? house?) without notice to the defendant. The theory being that if he is notified, he will take the money out of the bank account, or transfer the property.

 

Since you know that he has no intention of paying, I suggest that you contact a lawyer and ask discuss an Ex Parte Attachment with him/her.

 

Since you have such a good case, you may find an attorney who will take your case in a contingent basis. A percentage of the money collected instead of payment up front.

 

Hope this helps.

 

Mary

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