How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Alex J. Esq. Your Own Question

Alex J. Esq.
Alex J. Esq., Attorney at Law
Category: Legal
Satisfied Customers: 13271
Experience:  Experienced Licensed Attorney
26296561
Type Your Legal Question Here...
Alex J. Esq. is online now
A new question is answered every 9 seconds

I live in Texas. A friend and I drew up a promissory note

Customer Question

I live in Texas. A friend and I drew up a promissory note stating that I would loan him $1000 and he would pay me it back in 10 monthly payments @ interest of 10% remaining principle monthly balance per month. ex.first payment is 200 2nd payment is 190 ects...After the 4th payment he plainly said Im not going pay you anymore and stop calling me. So I am suing him in a small claim court for the balance. I receive a counter claim from an atty stating that the interest rate is usury and they are suing me for damages and penalties??? In the collection letter I wrote him I signed it with my name and my fathers LLC which is a real estate company but I do not own it (my father does) and the Counter claim is addressed to both of us. (company and myself). I guess I wanted the letter to seem stronger so I put my fathers company name on their but it has nothing to do with this personal loan which the promissory note is solely in my name as lender. Will this guy win and not pay me and will I have to pay him??? What must I do?
Submitted: 1 year ago.
Category: Legal
Expert:  Alex J. Esq. replied 1 year ago.
Hello. My name is Alex and I will be happy to answer your question.

I am sorry about your unfortunate situation.

Attorneys are allowed to represent litigants in Texas Small Claims court.

Unfortunately, the legal interest rate that can be charged on personal loans in Texas is 6%.

Unfortunately, not only the court can declare this loan agreement void and illegal, but the court can also award the judgment to the borrower and you as a creditor can be liable to the debtor for the greater of 1) three times the excessive interest contracted for charged, or received, or 2) $2,000.00 or 20 percent of the amount of the principal, whichever is less, plus borrower's attorneys' fees.

At this point it would make sense for you to contact a local attorney and to work out some type of a settlement with the borrower's attorney and to avoid exposing yourself and your father's LLC to further potential liability.

I wish you the best of luck!
Customer: replied 1 year ago.


So does that mean that the borrower is no longer liable for the principle balance he owes me? Are you saying that not only does he not have to pay me but I owe him now $200 + Atty fees?

Expert:  Alex J. Esq. replied 1 year ago.
Dear Roland,

Thank you for your follow up.

Unfortunately, the law is pretty clear on this issue and it would be up to the judge to rule whether the loan would be void and also the amount of money that you might owe to the borrower.

However, at this point it would generally be in the best interest of someone in your position to hire a local attorney to negotiate and amicable resolution of this situation.

I wish you the best of luck!
Expert:  Alex J. Esq. replied 1 year ago.
Dear Roland,

Do you have any related follow up questions for me?

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Not only did he answer my Michigan divorce question but was also able to help me out with it, too. I have since won my legal case on this matter and thank you so much for it. Lee Michigan
 
 
 

Meet The Experts:

 
 
 
  • Tina

    Lawyer

    Satisfied Customers:

    8436
    JD, BBA Over 25 years legal and business experience.
< Last | Next >
  • http://ww2.justanswer.com/uploads/MU/multistatelaw/2011-11-27_173951_Tinaglamourshotworkglow102011.64x64.jpg Tina's Avatar

    Tina

    Lawyer

    Satisfied Customers:

    8436
    JD, BBA Over 25 years legal and business experience.
  • http://ww2.justanswer.com/uploads/RA/ratioscripta/2012-6-13_2955_foto3.64x64.jpg Ely's Avatar

    Ely

    Counselor at Law

    Satisfied Customers:

    19941
    Private practice with focus on family, criminal, PI, consumer protection, and business consultation.
  • http://ww2.justanswer.com/uploads/FL/FLAandNYLawyer/2012-1-27_14349_3Fotolia25855429M.64x64.jpg FiveStarLaw's Avatar

    FiveStarLaw

    Attorney

    Satisfied Customers:

    8189
    25 years of experience helping people like you.
  • http://ww2.justanswer.com/uploads/jespoag/2008-12-17_222355_jessepic.jpg JPEsq's Avatar

    JPEsq

    Attorney

    Satisfied Customers:

    2132
    Experience as general attorney, in house counsel, SSDI, Family Law attorney, and law professor
  • http://ww2.justanswer.com/uploads/gsenmartin/2008-04-22_214950_me1.jpg Guillermo J. Senmartin, Esq.'s Avatar

    Guillermo J. Senmartin, Esq.

    Attorney

    Satisfied Customers:

    110
    7+ years of experience handling various legal matters.
  • http://ww2.justanswer.com/uploads/PA/PaulmoJD/2013-10-10_195858_JAImage.64x64.jpg Law Educator, Esq.'s Avatar

    Law Educator, Esq.

    Attorney

    Satisfied Customers:

    31621
    JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
  • http://ww2.justanswer.com/uploads/dkaplun/2009-05-17_173121_headshot_1_2.jpg Dimitry K., Esq.'s Avatar

    Dimitry K., Esq.

    Attorney

    Satisfied Customers:

    15975
    Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.
 
 
 

Related Legal Questions