Legal Question in Business Law in California

Re: someone owes me $50k

Your set of facts reflects at least two problems.

First, in executing a document in which he promises to pay be year end, you may possibly have given your debtor an enforceable waiver, forbearance or even novation allowing him to argue that the debt due date is extended until then. Probaly not, because there was probably no new consideration, but it is troublesome.

The second problem is that you seem to have lent a substantial sum without collateral. You cannot now wave a magic wand and subject the equity in his restaurant business, if any, to your claim. Only a court can do this, after trial.

People try to sell businesses because further operation of them looks unrewarding to them. The desire to sell is more often related to declining prospects than improving profit outlook.

I'd say your situation sounds pretty grim, and you should submit the details to a business litigator who is prepared to sue and, after obtaining judgment, go hammer-and-tongs after the debtor's assets, whether they be the equity in his restaurant or the family jewels. More likely than not this turkey doesn't have any liquid assets, or he'd have paid you (or not borrowed $50K in the first place) and you are going to have to go to the mat to collect even a high fraction of what you are owed, plus interest...I assume you have a written promissory note calling for interest that is economically adequate for the risk you took but at the same time not usurious.