Legal Question in Credit and Debt Law in California

promissary note

I signed a personal guarantee {promissary note} to pay off a purchase of a business. I owe 24k out of 125k...I am unable to continue to make payments...can the holder of the promissary note sue me and can he levy or abstract my house? I did not collateralize this promissary note with any asset..what is my exposure on this promissary note? please help. Thank You


Asked on 2/01/08, 2:57 pm

2 Answers from Attorneys
Jonathan Stein Law Offices of Jonathan G. Stein

Re: promissary note

You can be sued. If he sues you and wins, he will have a judgment. He can then record an abstract of judgment and have a lien against your house. You should contact an attorney to try to negotiate something for you.

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Answered on 2/02/08, 12:38 am
Carl Starrett Law Offices of Carl H. Starrett II

Re: promissary note

You haven't identified any legal defense for nonpayment of the note, so the holder could sue you for the balance owe. With a judgment in hand, the judgment creditor definitely could record a document called an Abstract of Judgment and this would create a lien your home and any other property in your name.

A bankruptcy attorney or other attorney might be able to help you negotiate a settlement or even for bankruptcy if necessary.

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Answered on 2/01/08, 3:30 pm


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