Promissory Note Guides
89 articles in this category
What happens to a family loan when the borrower files for bankruptcy?
When a relative you lent money to files for bankruptcy, you have to stop asking to be paid, and repayments from the past year can be clawed back.
Paying with a promissory note: using a note to buy something
When a buyer pays with a note instead of cash, the seller becomes a lender. Here's how to secure the note, why negotiability matters, and how payments are taxed.
When a balloon payment comes due and the borrower cannot pay
A missed balloon payment is a real default on the maturity date. Here are the lender's four options and what each one does to interest, timing, and paperwork.
Arbitration and jury-waiver clauses in a promissory note
Should your promissory note say where and how a dispute gets decided? Here's how arbitration, jury waivers, and forum clauses work, when courts enforce them, and sample language that holds up.
What happens if you miss a payment on a promissory note
A missed payment on a promissory note starts a process, and at almost every step you still have options. Here is what happens next, from the borrower's side of the table.
Can you sue on a promissory note in small claims court?
Small claims court can turn an unpaid promissory note into a judgment for under $100 in filing fees. Here's how the dollar limits, evidence, and interest math work.
Two lenders on one note: how co-lenders share the loan
Two people fund one loan and sign one note. It works until the borrower misses a payment and the lenders disagree about what to do next. A page of terms prevents most of that.
Oral modifications: why a side agreement may not stick
You tell the borrower to skip a month. Nobody writes it down. Whether that conversation binds either of you depends on a handful of rules worth knowing before the phone call.
Who services a promissory note: escrow, third-party servicers, and doing it yourself
Somebody has to collect the payments, split principal from interest, and keep the ledger straight. Here are the three ways private notes get serviced and what each one costs.
Co-makers and joint borrowers: When two people sign one note
Sign a note as a co-maker and you owe the whole balance, not half. Here's how joint and several liability, contribution, and co-signers really differ.
Using a promissory note for unpaid rent or a back-rent payment plan
When a tenant falls behind, a signed note turns the arrears into a fixed debt with a schedule. Here is what it must say, how it affects a pending eviction, and whether a notary is required.
Promissory note terms explained: principal, maturity, bearer, and more
A glossary for first-time lenders and borrowers, grouped by the job each word performs: the parties, the money, the timing, the security, and what happens if a payment does not arrive.