When can you sue over an unsecured promissory note?

Get Legal Help Today

 Secured with SHA-256 Encryption

When can you sue over an unsecured promissory note?

I loaned someone $5,000 a year ago, and I have a signed, notarized promissory note. The highlights of the note are: 1) minimum payment $10/month; 2) late payment Fee $10, 3) interest 10%/year, 4) payable on demand after 2 years. For the first 6 months I was not paid at all, then each month thereafter I was paid late, and only after I contacted the debtor about being late. It’s been a year and I want to sue over the note. I want to know if 6 months delinquency and then late payments each month are strong enough grounds to sue. I don’t want to lose because the note isn’t payable on demand yet.

Asked on September 20, 2010 under Bankruptcy Law, Florida

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

If, under  the terms of the note, you should havve been paid certain amounts and have not received them, you could sue for those amounts--you can sue over any missed payments, and do not need to wait until the full payment is due. However, since you can only sue for what you've missed to date--you can't sue for the full $5,000, since it's not yet payable on demand--it may not be worth it to sue; it seems like, given a $10/mo minimum and a $10 late fee/mo., the most you could sue for after one year, even if you had been paid nothing to date, would be around $240 or so dollars. To sue for the full note, you need to wait until it's payable on demand; you make a demand; and it's not paid.


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.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption