Legal Question in Credit and Debt Law in Arizona

Collection of, or sale of promisory note

My father is in poor health. I am arranging his estate. He has a promisory note with a friend in FL for about $50k due 12/31/03. The friend has been extending this supposedly 6 month loan for over 10 years and has told me he doesn't expect to pay when due.

1. How enforceable/collectable is a promisory note?

2. Can I purchase the promisory note from my father so that I can deal with it now and he won't have to?

Thank you.

--name removed--Lankford


Asked on 10/13/03, 6:29 pm

1 Answer from Attorneys
Mark Mahoney Cassiani Law Office, Wise Shepherd Law Office

Re: Collection of, or sale of promisory note

Hello,

Promissory notes are enforceable and collectable, the same as any other contract.

You would first bring a lawsuit to get a judgement that the money is owed. Then you have to bring another action to collect the money owed. That is where the problem comes in. If the borrower has real estate you can put a lien against it and collect if the real estate is sold, or if the borrower has other assets or income you can try to go over that. And yes, you can buy the note from your father, or he can even just assign it to you as a the gift, and then it is yours to pursue even while he is alive. If you hire a lawyer to help you, it will have to be one licensed in Florida. These are just my general impressions, I do not have all the facts. To know for sure what your options, if any, may be you will need to retain a lawyer and get actual legal counsel. Best wishes, Mark J. Mahoney

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Answered on 10/14/03, 8:51 am


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