Promissory Note Guides
89 articles in this category
Promissory notes between an employer and an employee
Payroll advances, relocation packages, tuition reimbursement, and sign-on bonus clawbacks all work better as written notes. Here is how to structure one and stay inside the wage deduction rules.
What is promissory estoppel, and when does a promise become enforceable?
Promissory estoppel lets a court enforce a promise even when no contract exists. Here is what the doctrine requires, why judges apply it narrowly, and how long you have to bring the claim.
How to write off a promissory note that will never be repaid
A promissory note that goes bad can become a nonbusiness bad debt deduction, but only if the loan was real, the debt is totally worthless, and you can prove both. Here's what the IRS wants to see.
Electronic promissory notes: eNotes, transferable records, and how a digital note is held
A true eNote is more than a signed PDF. Here is how transferable records, control of the authoritative copy, and eVaults let a note move in digital form.
References on a promissory note: who a lender can ask and why
A reference is not a witness and not a co-signer. Here is what lenders use references for, why people at your address are usually excluded, and what a lender may do with that phone number.
Lending money to your own LLC: how to document a member loan
Putting your own cash into your LLC is easy. Getting it back, and keeping the IRS from calling it equity, takes a promissory note and a few habits. Here is how to paper a member loan the right way.
Using a promissory note to buy out a sibling's share of inherited property
One heir keeps the house and signs a note for the others' shares. How to set the price, secure the note against the property, and satisfy the IRS on interest.
Convertible promissory notes: How startup convertible notes actually work
A convertible note is a startup loan built to become equity, not to be repaid. Here's how caps, discounts, maturity dates, and conversion actually work.
Which state's law governs your promissory note?
When the lender and borrower live in different states, one sentence decides the usury ceiling and the limitations clock. Here is how governing-law clauses work and when a court ignores them.
What happens to a promissory note when the lender dies?
The loan does not disappear when the lender passes away. Here is who you pay next, what proof of authority to demand first, and how a forgiveness clause in the will actually works.
Wage garnishment and collecting a judgment on an unpaid note
You won the lawsuit on your note. Now comes the hard part. Here is how wage garnishment, bank levies, and liens turn a judgment into money.
Will a promissory note hold up in court? Proving and authenticating a note
A signed note does not enforce itself. Here is what it takes to win at trial: the original document, a proven signature, and answers to the defenses.