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Guides, tips, and state-specific information about promissory notes and lending transactions.
Can someone sign a promissory note with a power of attorney?
An agent can sign a promissory note for someone else if the power of attorney covers borrowing and the signature shows the agent's capacity. Here's what a lender should check.
Sarah Mccullen · November 14, 2026 at 1:21 PM ET 
Wage garnishment limits by state for unpaid loans
Federal law lets a judgment creditor take at most 25 percent of disposable pay. Here is how 17 states shrink that number, and which ones block garnishment outright.
James Stackpoole · November 13, 2026 at 1:51 PM ET 
Does a partial payment restart the statute of limitations on a promissory note?
A small payment can reset the deadline to sue on a note in some states and do nothing in others. Here's how 17 states treat payments and written acknowledgments.
Sarah Mccullen · November 12, 2026 at 12:25 PM ET 
Medicaid and family loans: when a promissory note counts as a gift
Families often lend a parent's savings to a child, or the reverse, without thinking about long-term care. Medicaid looks back five years, and a promissory note that does not meet three federal requirements is treated as a gift. What those requirements are and why they matter.
Sarah Mccullen · November 11, 2026 at 12:44 PM ET 
How to write a promissory note amendment (with a sample)
An amendment changes specific terms of a signed note. Here's what it must identify, who has to sign it, and a full sample built on a $12,000 note.
Sarah Mccullen · November 10, 2026 at 12:31 PM ET 
Bridge loans between individuals: how to document one
A family bridge loan covers the gap until a home sells. Here is how to set the maturity, secure it, structure interest-only payments, and plan for a sale that falls through.
James Stackpoole · November 9, 2026 at 12:29 PM ET 
Collecting a judgment from a borrower who moved to another state
If your borrower moves after you win, you do not have to sue again. You can register the judgment in the new state. Here is how the process works in Florida and North Carolina.
James Stackpoole · November 6, 2026 at 12:01 PM ET 
Is a promissory note legally binding in Oregon?
Yes, if the borrower signs a clear written promise to pay. Oregon gives lenders six years to sue on most notes and caps interest on many loans of $50,000 or less.
Sarah Mccullen · November 5, 2026 at 12:20 PM ET 
Is a promissory note legally binding in New York?
Yes, when it has the right elements. Learn what New York requires, its six-year deadline to sue, the 16% civil and 25% criminal usury limits, and notary rules.
James Stackpoole · November 4, 2026 at 1:08 PM ET 
Can a co-signer be removed from a promissory note?
A co-signer comes off a promissory note only with the lender's agreement, through a signed release, a refinance, or a new note. Changing the deal without consent carries risk for the lender.
James Stackpoole · November 3, 2026 at 12:38 PM ET 
How can some lenders legally charge 200% interest?
Payday and small-loan lenders charge triple-digit APRs under licensing statutes that override usury caps. A private lender with a promissory note gets no such exemption.
Sarah Mccullen · November 2, 2026 at 11:43 AM ET 
Is a promissory note legally binding in Tennessee?
A signed promissory note is binding in Tennessee. Here's how long lenders have to sue, how the weekly formula rate limits interest, and where notarization fits.
Sarah Mccullen · October 30, 2026 at 1:20 PM ET 
How to build an amortization schedule for a promissory note in a spreadsheet
One payment formula and four column formulas turn any spreadsheet into an amortization schedule. Here is the setup, a worked $8,000 example, and the final-payment fix.
James Stackpoole · October 29, 2026 at 12:06 PM ET 
Can you charge a higher interest rate after a promissory note defaults?
A default interest rate clause can raise the rate after a missed payment, but it must be written in advance, stay reasonable, and fit the state usury cap.
James Stackpoole · October 28, 2026 at 12:45 PM ET 
Interest-only promissory notes: how they work and when to use one
An interest-only note keeps early payments low and leaves the principal untouched. See a $50,000 example at 7 percent, the borrower's risks, a sample clause, and IRS reporting.
James Stackpoole · October 27, 2026 at 12:44 PM ET 
Is a promissory note legally binding in Ohio?
Yes. A signed promissory note is enforceable in Ohio, generally for six years under R.C. 1303.16. R.C. 1343.01 caps interest at 8 percent a year unless an exception, like a loan over $100,000, applies.
Sarah Mccullen · October 26, 2026 at 12:09 PM ET 
Can a promissory note be notarized online?
Yes, in states that allow remote online notarization. See how Virginia, Texas, and Florida handle it, what the notarial fee can be, and when an e-signature alone may be enough.
James Stackpoole · October 23, 2026 at 12:34 PM ET 
If you lend money to someone for their business, who has to pay you back?
The person or company that signs the note owes you. Here's how individual, LLC, and guarantor signatures change who pays when a business fails, with sample signature blocks.
Sarah Mccullen · October 22, 2026 at 11:42 AM ET 
Is a promissory note legally binding in North Carolina?
A signed promissory note is binding in North Carolina without a notary. Here are the elements, the six-year and three-year deadlines, the seal rule, and the usury limits.
James Stackpoole · October 21, 2026 at 12:30 PM ET 
You lent money to a boyfriend or girlfriend, then broke up. Can you get it back?
Unmarried couples have no divorce court to divide money when they split. A loan between partners is collectible like any other debt, but only if you can show it was a loan and not a gift. What evidence counts, where to sue, and how to write it down next time.
James Stackpoole · October 20, 2026 at 12:32 PM ET 
Using a promissory note when you sell a small business
A seller note lets a buyer pay part of a business price over time. Here's how to secure it, add guarantees, fit SBA standby rules, and report it for taxes.
Sarah Mccullen · October 19, 2026 at 11:42 AM ET 
What to do as a parent if your child doesn't pay back a loan
Your child stopped paying on a family loan. Here are the five realistic options, from a new payment plan to forgiveness, and what each one means for taxes and your estate.
James Stackpoole · October 16, 2026 at 1:14 PM ET 
Lending money to someone on SSI: how to keep the loan from counting as income
Money given to someone on Supplemental Security Income can reduce their benefit. A real loan does not, if it meets five requirements Social Security spells out. What those requirements are, why the paperwork has to exist before the money changes hands, and what the lender should know.
Sarah Mccullen · October 15, 2026 at 12:30 PM ET 
Can the borrower deduct interest on a personal loan from family?
Usually not. Interest on a family loan used for personal spending is nondeductible personal interest. The exceptions are a recorded mortgage on the borrower's home and money used for a business or investments.
Sarah Mccullen · October 14, 2026 at 11:51 AM ET 
Payment methods and proof of payment on a private loan
Private loans rarely fall apart over the paperwork. They fall apart because nobody can show what actually moved, and when. Build the record while the money is moving.
Sarah Mccullen · October 13, 2026 at 12:58 PM ET 
Can someone else take over the loan? Assumption and successor liability
Your borrower wants to hand the payments to a buyer, a relative, or a friend. Here is what actually transfers, what stays behind, and the paperwork that decides which is which.
James Stackpoole · October 12, 2026 at 11:36 AM ET 
What is the maximum interest rate you can charge in California?
California caps non-exempt private loans at 10 percent a year for personal, family, or household use. Other loans can go to the higher of 10 percent or 5 percent plus a Federal Reserve rate.
Sarah Mccullen · October 9, 2026 at 1:24 PM ET 
What happens if a promissory note does not state an interest rate?
A promissory note with no stated rate is generally interest-free until it is past due. After default, state statutory rates can apply, and IRS rules can impute interest.
James Stackpoole · October 8, 2026 at 12:58 PM ET 
Is a promissory note legally binding in Pennsylvania?
Yes. A signed promissory note is enforceable in Pennsylvania, usually for four years under 42 Pa.C.S. 5525. Act 6 caps interest at 6 percent on many loans of $50,000 or less.
Sarah Mccullen · October 7, 2026 at 1:20 PM ET 
Is a promissory note legally binding in New Jersey?
Yes, if it has the right elements. Here's what New Jersey requires, how long a lender has to sue, the 6% and 16% usury limits, and whether you need a notary.
Sarah Mccullen · October 6, 2026 at 11:22 AM ET