Promissory Note Guides
59 articles in this category
Can You Change the Terms of a Promissory Note After Signing?
Life changes after a loan is made. The borrower loses a job. The lender needs the money back sooner than expected. Both parties agree the interest rate was too high. Whatever the reason, one or both parties want to adjust the terms of a promissory note that's already been signed, and the question is whether that's even possible and how to do it without creating a legal mess...
Can a Minor Sign a Promissory Note?
It comes up more often than you'd think. A parent co-signs a loan for a teenager buying a car. A grandparent lends money to an 17-year-old heading to college. A young entrepreneur borrows startup funds before their 18th birthday. In each case, someone is wondering whether a promissory note signed by a person under 18 is actually enforceable, or whether the whole document can be unwound the moment the minor decides they don't want to honor it...
How to Write a Promissory Note for a $1,000 Loan to a Friend
A thousand dollars feels small until a friend doesn't pay it back. It's not enough to hire an attorney over, not enough to make small claims court feel obviously worth the trouble, but plenty enough to create lasting awkwardness every time you see that person. It's also exactly the amount where most people skip the documentation because it feels like overkill...
IOU vs. Promissory Note: Which One Actually Protects You?
Both documents acknowledge a debt. Both can be written by hand. Both involve one person owing money to another. So what's the actual difference between an IOU and a promissory note, and does it matter which one you use when money changes hands?
How to Write a Promissory Note for a $20,000 Business Loan
Twenty thousand dollars is a meaningful number in private business lending. It's large enough to require serious documentation, large enough to cause real financial damage if it doesn't come back, and right at the threshold where the difference between a well-drafted promissory note and a poorly drafted one starts to have significant legal consequences. It's also the kind of amount that often moves between people who know each other, a friend investing in a startup, a family member bridging a cash flow gap, a business partner covering payroll, which is exactly when documentation gets skipped and problems start...
Someone Is Claiming My Loan Was a Gift: What Can I Do?
You lent someone money. You have bank records showing the transfer. Now they're telling you, your family, or a judge that the money was a gift and they don't owe you anything. It's one of the most infuriating positions a lender can be in, and it's more common than you'd think, especially in family and friend lending situations where nothing was written down...
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...