Legal Question in Credit and Debt Law in District of Columbia

Rent debt agreement

We defaulted on our rent in 2003. Our landlord took us to court and as per agreement with the lawyer we were to vacate premises no later then November 15th. There were no agreement regarding past due rent at that point. We found another apartment, but they informed us that they will be contacting our previous landlord to find out if there were any problems. Obviously if he told them that we defaulted on our rent we would not get approved and will no be able to comply with court agreement to vacate property in November. He agreed not to disclose the rent problem if we signed a promissory note agreeing to repay the debt. We had no other choice, but to sign it. We did however stated on the note that it is contingent on being approved for new apartment and if we are not the note is void. My questions are: is that extortion? Since we had no other choice but to sign it. Second in the note it states that interest shall accrue as per term of the lease (1.5% a month) isn�t it a little too high? There are quite a few complaints that went unresolved regarding maintenance therefore he failed the terms of lease as well. Should I just let him take us to court for judgment in order to address all the issues and lower the debt?


Asked on 3/18/04, 2:24 pm

1 Answer from Attorneys
Michael Hendrickson Law Office Michael E. Hendrickson

Re: Rent debt agreement

No, the promissory note which you signed under the circumstances you've described would not(in my opinion)qualify for the serious crime of extortion.

The interest rate which you agreed to in the lease could also be applied to the note, if that's what you agreed to.(And, no, a rate of 1.5% per month is not usurious as far as I know under current state law.)

Before allowing the matter to go to enforcement and possible judgment against you on the note, you would be better advised to contact the attorney who drafted the note in behalf of your former landlord and see whether the note can be renegotiated on terms more favorable to your current circumstances.

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Answered on 3/19/04, 11:02 am


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