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ScottyMacEsq
ScottyMacEsq, Attorney
Category: Legal
Satisfied Customers: 16332
Experience:  Licensed Texas General Practice Attorney
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I owe 30,000 in a promissory note business loan. The

Customer Question

I owe 30,000 in a promissory note for a business loan. The person I bought my business from is taking me to small claims court for a much lesser amount than what's o the note. Does this mean I will not owe the remaining amount on the promissory note? She's claiming late payments in small claims but she's requested me to wait to pay her multiple times to control how much money she's getting in income to avoid paying more taxes. I should have had the note paid in full already but she kept pushing out payments and got mad at me over something and filed small claims claiming I'm not paying.
Submitted: 2 years ago.
Category: Legal
Customer: replied 2 years ago.
the full promissory note was suppose to begin Dec of 2013 and conclude Dec 2014. She repeatedly asked me to not pay her yet as she wanted me to pay her when she was in a medical program. I got her a job, she became hostile to me recently when she disagreed with how I was running the business even though she has no interest in it. I believe she is filing small claims court for 2 past due payments but according to the note all the payments are past due!
Customer: replied 2 years ago.
Please note: I've paid her $18,000 as the promissory note was for total of $50,000
Customer: replied 2 years ago.
She violated her termination agreement, and spoke to a business owner. The corporation that I work for that she was terminated from (she sold me a percentage of contract sales) made her sign that she would not speak to any of my clients. She has done that.,
Expert:  ScottyMacEsq replied 2 years ago.
Thank you for using JustAnswer. I'm sorry to hear about your situation. How much was each payment supposed to be?
Customer: replied 2 years ago.
That was originally 50000 divided by 12 she changed it though so what she's taking me to small claims court is a completely different amount than that
Expert:  ScottyMacEsq replied 2 years ago.
You said she's taking you to small claims for two payments, correct?
Customer: replied 2 years ago.
I don't know all the details but the 2 total amount of the payments in the original agreement don't equal the amount she's trying to get in small claims court.,
Customer: replied 2 years ago.
I don't know the details as in how much she's asking for
Expert:  ScottyMacEsq replied 2 years ago.
So you don't know how much she's asking for in small claims?
Expert:  ScottyMacEsq replied 2 years ago.
Unfortunately I cannot communicate with you by phone, email, fax, or any other method off this site, per the terms of service of the site relating to the forming of attorney-client relationships. But we can proceed with the question here.
Customer: replied 2 years ago.
I don't know how much it is yet but it can't exceed $5000 because that's the largest of small claims that you could possibly ask for
Customer: replied 2 years ago.
She filed the day before yesterday and I wasn't able to get the information from the court yet because they did not process it yet
Customer: replied 2 years ago.
She sent me an invoice last week, but the invoice has nothing that we have ever agreed to on it and there are two separate sections of it so that is what I believe that she would be taking me to small claims court for. That's why said the last two payments but again that's not the last two payments according
Customer: replied 2 years ago.
To our original purchase and sale agreement as well as the promissory note nor have I ever agreed to anything in verbal or writing .
Expert:  ScottyMacEsq replied 2 years ago.
To be clear, she didn't "accelerate" the loan, did she?
Customer: replied 2 years ago.
No, never.
Customer: replied 2 years ago.
Can you explain to me accelerate means exactly
Expert:  ScottyMacEsq replied 2 years ago.
That means that upon nonpayment, the entire amount of the promissory note is due immediately. That's how mortgage companies foreclose on houses. Otherwise, they could only go after individual payments at a time, because "future" payments would not yet be due. A promissory note is a series of payments that are due. So in essence she could sue for each payment individually, and that is a common tactic in small claims actions. This is not a "necessary joinder" of claims situation, in that she doesn't have to sue for the entire amount. She could sue for payment # ***** then another case for #6, and so on. If she accelerated the loan, she would have to sue for the entire amount all at once, otherwise waive it. Or if each payment was, say, $20,000, she could only sue for the amount allowed in small claims (otherwise she'd have to bring a case in regular court) and waive the rest. But she can sue for each payment. That being said, you can certainly contest any fees and costs in addition to the amount owed. And if you have a case for breach of contract on her part, you can countersue. But the debt doesn't go away, and the remainder of the loan would still need to be paid, I'm sorry to say. I know this is probably not what you wanted to hear, but it is the law. I hope that clears things up anyway. If you have any other questions, please let me know. If not, and you have not yet, please rate my answer AND press the "submit" button, if applicable. Please note that I don't get any credit for my answer unless and until you rate it a 3, 4, 5 (good or better). Thank you, ***** ***** luck to you!
Customer: replied 2 years ago.
So what you are saying is that she can just repeatedly take me to small claims court one payment after another
Expert:  ScottyMacEsq replied 2 years ago.
Unfortunately, yes.
Expert:  ScottyMacEsq replied 2 years ago.
Now I would still complain about it, arguing that the payments were due and that the "damages" the plaintiff incurred would then be set, and so any case she brings should therefore include all damages. But that would be up to the judge to determine.
Expert:  ScottyMacEsq replied 2 years ago.
Did you have any other questions before you rate this answer?
Expert:  ScottyMacEsq replied 2 years ago.
Are you there? Please note that I am still here, awaiting your response or rating... (please note that rating closes this question out, so if there's nothing else, please rate it so that I can assist other customers that are waiting for answers to their questions)
Expert:  ScottyMacEsq replied 2 years ago.
Should I continue to await your response, or may I assist the other customers that are waiting?
Customer: replied 2 years ago.
My apologies for the delay in the response, your reply email went into my spam.
I found out that there is an part of the promissary note that reads if I am 4 months behind she can enforce that I pay in full. Since the note was suppose to be paid off by 2/15 in full, I am way more than 4 months behind. She repeatedly asked me to delay and changed the payment amounts to suit her needs to control her income as she was trying to reduce amount of taxes she owes. This means there is an acceleration to my promissory note.
Customer: replied 2 years ago.
I will rate you, I needed to read my document again as well. this has been most helpful. I appreciate all of your answers.
Expert:  ScottyMacEsq replied 2 years ago.
For it to be an acceleration, it has to be specifically stated in the contract that she can accelerate (there would need to be an acceleration clause) and she would need to specifically invoke that clause. Thank you for your rating. Please note that after you rate, you can still ask follow up questions that are in the same scope as the original question, so if there's nothing else for the time being, please rate it so that this question will close out (again, for the time being) and I can assist other customers that are waiting. Thank you, ***** ***** good luck to you!Hope that clears things up a bit.
Expert:  ScottyMacEsq replied 2 years ago.
I see that you have not responded in some time. Please note that this question is still open until you rate it. I believe that I have answered your question, but if you have any other questions, please let me know. If not, and you have not yet, please rate my answer. Please note that I don't get any credit for my answer unless and until you rate it a 3, 4, 5 (good or better). Thank you, ***** ***** good luck to you!
Customer: replied 2 years ago.
the exact wording is:
4: notwithstanding anything to the contrary in this Note, if the Borrower defaults in the performance of any obligation under this Note, then Toni A. Tardif may declare the principal amount owing and interest due under this Note at that time to be immediately due and payable *define "default" (four months)
Does this count as an acceleration? Thank you so much for your time, I have been processing my magazine deadline all day long.
Customer: replied 2 years ago.
My last payment was suppose to be January of 2014 but she asked me to push the payments out as she wanted to reduce the amount of taxes that she owed.
Customer: replied 2 years ago.
This means technically I am more than 4 months behind, but paid her a total of 18000 last year, random amounts at her request. Nothing is as the promissory note required.
Expert:  ScottyMacEsq replied 2 years ago.
That's an acceleration clause, yes, but note the "may" language. That means it's up to her to say that is is due and payable. She has to specifically state that it's all due now. And unless it's all a lump sum that has to be paid in one amount, she can still go after the individual payments.
Expert:  ScottyMacEsq replied 2 years ago.
Did you have any other questions before you rate this answer?
Expert:  ScottyMacEsq replied 2 years ago.
I see that you have not responded in some time. You mentioned that you would rate me. Please note that this question is still open until you rate it. I believe that I have answered your question, but if you have any other questions, please let me know. If not, and you have not yet, please rate my answer. Please note that I don't get any credit for my answer unless and until you rate it a 3, 4, 5 (good or better). Thank you, ***** ***** good luck to you!
Expert:  ScottyMacEsq replied 2 years ago.
Again, you still have not rated my answer, like you said you would. Was there anything else that I could help you with? This question remains open and I don't get any credit for the time and effort in assisting you unless and until you rate it.
Expert:  ScottyMacEsq replied 1 year ago.
Again, you still have not rated my answer, like you said you would. Was there anything else that I could help you with? This question remains open and I don't get any credit for the time and effort in assisting you unless and until you rate it.