Legal Question in Credit and Debt Law in California

I have a prommisary note in the state of California. I have it set up in three equal

Payments over the course of 6 months. The debtor has defaulted on the first payment. With the second payment due on the 1st of may he now tells me he is broke and cannot pay me anything. He has failed to meet me on several occasions to make even a partial payment.

If I am correct in California I need to send a demand of payment letter. My question is do I demand the entire worth of the note or am I only allowed to demand to delinquent payment ?

And if there is no response do I then file a small claims case against him?

The amount is $9,000 interest free....

Thanks

Nick


Asked on 4/23/13, 8:12 am

1 Answer from Attorneys
Scott Jordan Jordan Law Office

I am not aware of any law that requires a demand letter. However, it is good practice to first demand payment before moving forward legally.

How much you can demand depends on the terms of the promissory note. Is there an acceleration clause in the event of default? If the debtor has stated he does not intend to pay you, that may be sufficient to call in the entire amount and if he does not pay, grounds for a lawsuit.

Good luck.

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Answered on 4/24/13, 8:53 am


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