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Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: Legal
Satisfied Customers: 41220
Experience:  Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.
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What is the legal strength and status of Pagares in Puerto

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What is the legal strength and status of Pagare's in Puerto Rico when the original signature is in Financial stress, In other words a person who has signed as an individual and for a corporation what rights would I have as the holder of the notes ?

Thank you for your question. Please permit me to assist you with your concerns.

Is the individual formally under bankruptcy protection as yet, or just under financial stress? Are both the individual and the corporation in the same financial position?

Customer: replied 3 years ago.

According to my knowledge he is not in Bankruptcy however due to his financial situation it may be a possibility.He is presently paying me interest on an overdue Pagare due in Oct 2010. At the present time he wants to discontinue or reduce those interest payments on the overdue Pagare.This person is the owner of trucking equipment, properties which include land, apartment buildings and private home which all of which may be mortgaged or not.The majority of these properties and equipment may have been mortgaged after the Pagares were signed in Oct 2005


Thank you for your follow-up. Until and if he is in bankruptcy, you can demand payments and potentially threaten him with liens and encumbrances against his assets, or direct judgments against his account. Because he has physical land and physical assets, you can seek a modification that includes collateral and a lien against those assets as an additional assurance that he will pay you as promised. Even if mortgaged, you can still record your own interest if needed so as to protect your right and your seniority based on the place in line for the lien.

Good luck.

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