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Dear Customer, thank you for choosing Just Answer, I would like to assist you with your legal question today. Please give me a moment to review your post.
Dear Customer, I believe that it may be easiest for me to describe how promisory notes work in general, and then address any specific questions you have following that as your question has multiple subparts that I believe can be addressed in a broader description. But please do not hesitate to follow up as I want to ensure you get as complete a response as possible.
A promissory note may include a "choice of law" clause which means that the parties decide which state's laws they will use in interpreting the terms of the contract. For example, if you want to use Florida law to interpret the contract, regardless of which state any lawsuit to enforce the contract is brought in, you can state that "this promissory note shall be enforced under the laws of the State of Florida" in a section entitled "Choice of Law".
To decide where you will sue the debtor in the event that they fail to pay, you have a couple of options. You can sue where the contract is entered into. Meaning, if you sign and enter into the contract in Florida, you may sue in Florida, in the County where the contract was entered into. If you entered into the contract in Louisiana, you may sue there. (If the contract is signed in counterparts (mailed or e-mailed between the two, you must designate which county it is deemed to have been entered into, Florida or Louisiana, as part of the contract language). You may also sue where the Debtor is living at the time that you file the lawsuit.
To get a debt such as a breach of contract or failure to pay a promissory note on a debtor's credit history, you must file a civil lawsuit for breach of contract. Once the lawsuit is on the Court Docket, it will become public record and the credit agencies will be able to search the docket and include the claim on the credit report.
After you get a judgment in your favor on the breach of contract for failure to pay on the promissory note, you may take judicial enforcement actions to recover your money (wage garnishment, bank levy, property liens, personal property levies, and receive orders for examination of the debtor).
I hope that this is of assistance, if you have more specific questions regarding your situation please let me know.
Thank you for all the information. I am still in a quandry as to the matter of which State to list in the promssory note since this person is highly likely to move from state to state due to the nature of his business. Even if he stayed in Louisiana, it would be burdensome to file a claim there since I live in Florida, for one. I guess my question is, does it really matter which State I may file a Breach of Contract? It seems not if, in the end, I get a judgment. Also, does filing such a claim require any court appearances by me or the debtor? (he would probably not show up anyway but with this person, one never knows). Thank you. I will defintely give you a good rating but didn't know if I could still ask you questions if I did that first.
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