Legal Question in Credit and Debt Law in California

I have a very unusual issue. I took a 6000 dollar loan from my best friends father. To secure his money I left my 30,000 tractor as collateral and we wrote up a security agreement and prommisary note. They were notarised. The note stated that if I fell more than 3 months behind in payments I would be in default. I made two payments and over Christmas my 26 YO girlfriend began a relationship with and moved in with him. Not that it legally matters but he is 61 after she moved in he filed a stay away order and refused to accept or acknowledge multiple payment attempts. Not answering phone calls voice and emails,actually burned a letter I sent via usps. When the loan was about to default 3 months later I attempted to pay the loan in full and was again ignored. A week or two later I received a letter from his attorney advising me not to attempt to make contact and deal with him only. It also stated that he was declaring the loan in default. After I explained via email The response that I received was that he would no longer be represent the guy with reguards to the tractor. There is no doubt that I can prove that I proved Good Faith in my attempts to satisfy the note. What are my rights and do I have a right to compensation for the 6 months that has passed with him continually ignoring my attempts to pay.


Asked on 10/24/11, 7:56 am

1 Answer from Attorneys
Scott Jordan Jordan Law Office

You can file a declaratory relief action in the Superior Court in you county and turn the money over to the Court to show payment in good faith. Then you can sue for breach of contract for the return of your tractor.

Good luck!

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Answered on 10/25/11, 9:31 am


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