What happens when you fail to make payments as per a promissory note?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What happens when you fail to make payments as per a promissory note?
My husband borrowed money for his business before we were married. His business failed and he had made some payments to his friend. However, he stopped making payments to her when his business went under. The loan was made to the business and he signed a promissory note. It has been a few years and since then he has lost his home, his job and car. He is not working and I have been helping him with his child support payments which have been reduced. Tomorrow he has to go to court because she file a case against him. Can the courts make him pay even though he has no money?
Asked on September 25, 2011 under Bankruptcy Law, Florida
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
If your husband signed a promissory note in his name for moneys borrowed from this friend and he has failed to repay her under the terms of the promissory note assuming payment is now due and payable, he essentially has breached the terms under the promissory note. His apparent breach of the promissory note is much like the breach of a written contract.
The purpose of the upcoming hearing is to establish liability and damages of the claims against your husband. Assuming he loses the upcoming trial, there will be a judgment entered against him. Once entered, the friend who is now a judgment creditor will then attempt to collect on the judgment awarded regardless of the fact that your husband apparently has no assets to satisfy any award against him.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.