How do I collect on a promissory note?

I loaned 5k to a neighbor. I have a promissory note with their company stock pledged as collateral. The terms of the loan expired, now, they don't feel like paying me back. They sent cease and desist letter. I told them no, I'm the original owner of the debt, not 3rd party. The stock was useless when they pledged it. Is that illegal? And how go I collect?

Comments for How do I collect on a promissory note?

Click here to add your own comments

Oct 21, 2009
Collecting on a promissory note
by: Mary Reed

Given the size of the debt you are owed by your neighbors, you could sue them in small claims court. You will not need to hire an attorney to file the lawsuit or represent you in this court and your primary expense will be a filing fee. If you win the lawsuit and obtain a judgment against your neighbors, you are entitled to try to collect on the judgment. However, collecting could be difficult if not impossible depending on the nature of their assets.

I do not have an answer for you regarding the company stock that your neighbors used to collateralize the note. I would suggest that you consult with an attorney on that matter. It would be a good idea to do that before you file in small claims court.


Click here to add your own comments

Return to Debt Collection Questions.

Learn how debt collection laws can help you!
This website does not provide legal advice.
All information is for educational purposes only.
Copyright 2007 - 2016 by Mary Reed and Gerri Detweiler.
All rights reserved.