Legal Question in Business Law in Illinois

Re: Enforcing a promissory note

You do not need to wait for the end of the contract. If there is a missed payment (breach of the contract) you can file suit on the contract and seek a judgment.

As for the lack of a co-signor- if the other party gets hurt or fails to pay, and does not have assets/collateral to secure the loan or a judgment on the loan, then yes, you will likely lose your money. In other words, if he fails to pay and you get a judgment, you still have to collect it. Without assets, that may not be possible.

Re: Enforcing a promissory note

While you would have a right to sue for breach of contract upon the failure to make a single installment payment, without the need to wait the entire 22 months, you would only be entitled to sue for the amount of that missed installment(s), since there is no acceleration clause. I suppose you might be able to sue on a theory of "anticipatory breach," whereby the borrower's actions demonstrate that it is unlikely that future payments will be made.

-- Kenneth J. Ashman; www.AshmanLawOffices.com; [email protected]

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