Legal Question in Credit and Debt Law in Georgia

Default on Personal Loan

I made 2 loans to a single person...1 in 1998 and 1 in 1999.

I agreed to postpone payments during a difficult time his family was having. I have now been asking for repayment to begin and although he has promised and committed in writing and verbally over the last 6 months I now believe he is intending to not pay the loans back.

1 loan is for principal of $9739 in 1998...i am now demanding p + i of $17,531....10% apr per the promissory note.

2nd loan is for principal of $775 in 1999...i am now demanding p + i of $1317....10% apr per the promissory note.

All I have is the promissory notes...the note is secrured with the vehicles for each loan but also with the statement ''The payee is not required to rely on the above secruity for the payment of this note in the case of default, but may proceed directly against the promisor.''

Is their a time limit on a note such as this since we are 7 and 8 years out?

Do I have a case to go after the promissor personally?

Should I proceed thru small claims court or some other avenue?

Thank you in advance.

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Asked on 1/07/06, 3:00 pm

1 Answer from Attorneys
Glenn M. Lyon, Esq. MacGREGOR LYON, LLC, Business Attorneys

Re: Default on Personal Loan

I would need to review the Note to give you a complete answer, but you should be able to sue the debtor for the breach. There would be a time limit to bring suit, but it would begin at the time of the breach. Small claims court would be a good way to go if you are seeking less than $15,000.

If you would like to discuss any issues further, please feel free to contact my office. My contact information is below. Thank you.

The foregoing is general information only, not specific legal advice. No attorney/client relation has been created or should be implied.

Glenn M. Lyon, Esq

MacGregor Lyon, LLC

Promenade II

1230 Peachtree Street NE

Suite 1900

Atlanta Georgia 30309

Phone 404.942.3545

Fax 404.795.0993

[email protected]

www.MacGregorLyon.com

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Answered on 1/08/06, 12:36 pm


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