Promissory Note Guides
17 articles in this category
Can I Write My Own Promissory Note or Do I Need a Lawyer?
You need a promissory note and you're wondering whether to spend $300 on an attorney or just write the thing yourself. It's a reasonable question, and the honest answer is that for most personal and family loans, you don't need a lawyer. But "you don't need a lawyer" and "you can write whatever you want" are not the same thing, and the gap between them is where most self-drafted notes fall apart...
How to Write a Promissory Note for a $10,000 Family Loan
Ten thousand dollars is the number where family loans stop feeling casual. It's enough money to matter significantly if it doesn't come back, enough to create real tension at family gatherings, and exactly the threshold where the IRS starts paying attention to how the loan is structured. It's also, in most families, the amount where someone finally thinks about putting it in writing...
What Happens to an Unpaid Promissory Note When Someone Dies?
Here is what actually happens to an unpaid promissory note when someone dies, from both sides of the obligation...
What Happens If You Default on a Promissory Note?
Here is what actually happens when a promissory note goes into default, from the first missed payment to the last possible consequence...
How Long Do You Have to Sue Over an Unpaid Promissory Note in California?
You lent money, the borrower stopped paying, and now you are trying to figure out how much time you actually have before your legal options disappear. In California, the answer is four years for most written promissory notes, but that straightforward number comes with enough nuance to make it worth understanding fully before you decide how long you can wait...
Promissory Notes Between Business Partners: What to Include
Most business partnerships start with enthusiasm and goodwill. The legal paperwork feels like a formality, and asking a partner to sign a promissory note before money changes hands can feel like signaling distrust before the business has even gotten off the ground. That instinct is understandable and consistently expensive for the people who follow it...
Demand Promissory Notes: More Flexible, More Risk, and When to Use One
Most promissory notes work on a fixed schedule. The borrower owes a set amount, payments come due on predictable dates, and both parties know exactly when the loan will be retired. A demand promissory note works differently. There is no fixed repayment schedule. The lender can call the full balance due at any time, and the borrower is obligated to pay when that demand is made...
Unsecured Promissory Notes: What Lenders Give Up and How to Protect Themselves
When you lend money without requiring collateral, you are making a bet on a person rather than a position. There is no car to repossess, no property to lien, no asset waiting in the background if the borrower stops paying. What you have is a signed promise and, if the note is properly drafted, the legal standing to pursue that promise through the courts...
What a Promissory Note Actually Does for You in Court
You have a signed promissory note and a borrower who stopped paying. You are thinking about taking legal action and wondering whether the document in your hand is actually going to do anything useful once you get in front of a judge. The answer depends on what the note contains and how you present it, but a well-drafted promissory note is one of the strongest pieces of evidence you can bring to a debt dispute. Here is exactly what a promissory note does for you in a courtroom...
How to Record Payments on a Promissory Note
Here is how to track payments on a promissory note properly from the first installment to the last...
How to Properly Loan Money to Your Child for a House Down Payment
Helping your child buy a home is one of the more meaningful financial gifts a parent can give. But when the help comes in the form of a loan rather than a gift, the way you document it matters more than most families realize. A handshake arrangement between parents and children sounds fine until a divorce, a bankruptcy, a sibling dispute, or a mortgage application reveals exactly how much trouble an undocumented family loan can create...
What to Include in a Promissory Note for a Personal Loan
Here is exactly what a promissory note for a personal loan needs to include, and why each piece matters...