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    rachel101's Avatar
    rachel101 Posts: 77, Reputation: 19
    Junior Member
    		  
    #1

    Jan 5, 2008, 12:46 PM
    Enforcing a Promissory Note
    I am holding a promissory note from my ex-husband. Original amount was $38,000.00. About 15,000.00 is still outstanding and 4 months past the date of payment. I am thinking about taking action as he owns property and I cannot stay in contact with him just to collect the money. Is this a Superior Court matter or a Small Claims Court matter. I'm assuming I need a court judgement to place a lien on his property. I also assume once I have the judgement and lien against him I can leave the area and someday I'll get the money providing I leave a paper trail so I can be contacted when the money is available.
    Thanks for any advice available.
    George_1950's Avatar
    George_1950 Posts: 3,099, Reputation: 236
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    #2

    Jan 5, 2008, 03:11 PM
    You didn't say what state you are in. Most everything you have said is correct. Enforcing the lien has its complications; where I live, the lien becomes "dormant" after 7 years, but can be revived for an additional 7, and so on. As it has been said, do not slumber on your rights.
    rachel101's Avatar
    rachel101 Posts: 77, Reputation: 19
    Junior Member
    		  
    #3

    Jan 5, 2008, 04:14 PM
    Thank you George. I am in CA. Thanks for the heads up on the "lien becoming dormant". I will definitely check into that. A 7 year renewal on a lien seems reasonable to protect lender and lendee.
    George_1950's Avatar
    George_1950 Posts: 3,099, Reputation: 236
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    #4

    Jan 5, 2008, 04:54 PM
    Another bene: judgements accrue interest and it compounds, tax free, until collected. Call the small claims court and see if your claim qualifies; if it does, it is much simpler and you probably will not need an attorney, who will want a fee.
    excon's Avatar
    excon Posts: 21,482, Reputation: 2992
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    #5

    Jan 6, 2008, 05:40 AM
    Hello rachel:

    Most small claim courts around the country have a limit of $2,000 to $3,000. SOME small claims courts might go up to $5,000. California may be one of those. In any case, you're going to forego around $10 grand to sue in small claims.

    OR, you can sue in a higher court, and pay a lawyer $8,000 to represent you. I don't know.

    Yes, it's true - you are in the middle ground of lawsuit hell.

    I just sued my old business partner for $38,000, and paid a big-time lawyer. We settled for $10,000 (yes, it killed me to do it), and my lawyer got $5,000. I'd have been much better off suing in small claims court.

    excon
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