Legal Question in Business Law in California

Re: What recourse in case of 30k personal loan default

You need to sue and get a judgment. If the debtor owns real estate, you can record an abstract of judgment against title and it will act as a lien. Does the promissory note provide for the recovery of attorney's fees?

Re: What recourse in case of 30k personal loan default

Like anyone, you will need to file a lawsuit to turn the debt into a judgment, with which you can attach property.

Re: What recourse in case of 30k personal loan default

Send them a certified, return receipt letter, and one by first class mail. Of course, keep a copy. Indicate on the letter that you're sending it both ways. Also give them a reasonable date to begin paying -- usually 30 days. If there's no response, then you'd file a lawsuit. Once you obtain a judgment, you could file an abstract with the county recorder, and it attaches to any real property they might own. You could also begin other collection methods including wage and bank account attachments. Good luck to you.

Re: What recourse in case of 30k personal loan default

The first thing you should do is write (send your letter certified, return receipt requested) to them and demand that they pay-off the loan in accordance with the terms of the note (I assume you have a written promissory note signed by them). If they refuse to repay the loan, as Mr. Koenen said, you will need to file a lawsuit, obtain a judgment, then take steps to enforce the judgment.

Be aware that simply obtaining a judgment against another is not enough to ensure you are paid. You will be required to garnish their wages or bank accounts, or take other enforcement actions to get you money. Judgments in California bear simple interest at the rate of 10% per annum from the date of entry until paid, and are enforceable for ten years, at which time they can be renewed for successive ten year periods.

Re: What recourse in case of 30k personal loan default

If they have refused to pay, you will need to sue and obtain a judgment. If you're thinking about doing this yourself, that may be possible with some study of the procedures. But collecting a judgment is another thing entirely; there are many rules and procedures to follow which may be daunting to a non-lawyer.

Please feel free to call me if you'd like to discuss this further.