Legal Question in Credit and Debt Law in Alabama

If you used a standard installment contract form, it probably has a default clause which states or says that missing a payment puts the note in default and subject to being paid in full. If that's the case then you can proceed in Small Claims Court. However, from a practical stand point you may want to wait until the Dec 1, 2010 deadline to file in Small Claims Court. That would eliminate your cousin's possible excuse of "I was behind but I was going to pay it all by December 1st." If you elect to wait, I would send your cousin a reminder each month of the arrearage with a request that he/she pay the note timely each month. Date each reminder and keep a copy for yourself in case you need to show the Judge your attempts to collect without litigation if the matter does go to Small Claims Court. Finally, e-mail me at my office and I will forward you a .pdf copy of our free publication: Small Claims Court: A User's Guide. It has links to forms and rules of procedures for Small Claims Court as well as practical advice. Hope this was helpful. [email protected]