Legal Question in Credit and Debt Law in Florida
Promissory Note and Personal Guarantee
I loaned money to a person for the purchase of her home. I have a promissory note from her in the amount she owes me which is secured by her house. She missed the due date this week so I am going to go back and amend the note to extend the date and I am also going to add a personal guarantee to the note for her to sign. If she goes into bankruptcy, is there anything I can add to prevent this personal guarantee from being wiped out? Also, is there anything else I can have her sign at this point to make it as easy as possible to get my money back in the event she defaults again?
2 Answers from Attorneys
Re: Promissory Note and Personal Guarantee
The best way to do so is by having her sign a mortgage, which is then recorded in the County Clerk's office in which she is in.
You can also have her sign what we call in New York, an affidavit of confession of judgement which could also be filed in the County Clerk's office, and then assets can be attached.
A mortgage is not usually discharged in bankruptcy and will survive same.
Re: Promissory Note and Personal Guarantee
Provide a provision that she will pay attorney collection fees should she default
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