Promissory Note Guides
105 articles in this category
Do You Need to Record or Register a Promissory Note?
A plain promissory note is a private contract, so most notes are never filed with any government office. The exception is when the note is secured by real estate or personal property. Here's exactly when filing matters and how to keep your note safe.
Can You Charge a Late Fee on a Promissory Note?
A payment on your note is overdue again, and you are wondering whether you can add a fee to make late payments sting a little. The answer is yes, if you set it up correctly in advance. Here is how to write a late fee that holds up instead of one a court will throw out.
Promissory Note Statute of Limitations, by State
Someone owes you money on a signed note, and you have been waiting for them to make good on it. The problem is that the law does not let you wait forever. Here is how the deadline to sue works, when the clock starts, and how a single payment can reset it.
Which State's Law Governs a Promissory Note?
When the lender and borrower sit in different states, one question decides how the note is read: whose law applies. Here's how the governing-law clause works, why it matters most for usury and the statute of limitations, and what happens when the note is silent.
Promissory Notes in a Divorce: Documenting Money Between Spouses
One of you is keeping the house and buying the other out, but the cash will come over time rather than all at once. A promissory note turns that promise into an enforceable debt instead of a hope. Here is how spouses use notes to document money owed in a divorce and why a verbal agreement rarely survives the year.
What Is a Secured Promissory Note and When You Need Collateral
The difference between a secured and an unsecured note is the difference between a lender who can take something back and one who can only sue and hope. Collateral changes everything about your odds of getting paid, and knowing when to require it is the core lender skill.
How to Sell a Promissory Note You Hold (and What It's Worth)
If you're a private lender holding a note and you'd rather have cash now than payments over time, you can sell it to a note buyer at a discount. Here's exactly what makes a note sellable, how buyers price it, and the paperwork that transfers your rights cleanly.
Can Your Spouse or a Family Member Witness a Promissory Note?
You are about to sign a loan to your cousin and someone asks who should witness it, so you glance at your spouse standing in the kitchen. Before you grab the nearest person, it helps to know whether a witness is even required and why a neutral one is worth a little extra effort. Here is the practical answer.
Balloon Payments on a Promissory Note: How They Work
A balloon payment keeps the monthly payments low by leaving a large lump sum due at the end. It can make a loan affordable month to month, but that final payment has ended more than a few borrowers who never planned for how they would actually cover it.
Using a Promissory Note to Advance Money Against an Inheritance
Your daughter needs help now, and you would rather give it to her while you are alive than make her wait for the estate to settle. A promissory note lets you do that and still keep the eventual split fair among all your children. Here is how to document an advance against an inheritance so it is treated as a loan, not a gift, and so no one fights about it later.
Promissory Note vs. Loan Agreement: Which Do You Need?
People use the two terms as if they mean the same thing, then pick the wrong document for the deal. A promissory note is a borrower one-sided promise to pay. A loan agreement is a full two-sided contract. The right choice depends on how complex the deal is and how much you need to spell out.
What Happens to a Promissory Note in Bankruptcy?
When someone who owes you on a promissory note files for bankruptcy, your loan does not simply vanish, but your odds of collecting hinge on one thing most private lenders never thought about: whether the note was secured. Unsecured lenders are often last in line and may get nothing.