Legal Question in Civil Litigation in Iowa

Small Claims Court and installment payment promissory note

Private sale of car to daughter's

colleague who took possession and

title and signed promissory note to

pay $200 per month for twenty

consecutive months. To date - six

months after signing promissory note

- has only made one payment of

$200. since the promissory note did

not have an acceleration clause 1)

can i/should i sue for the entire

unpaid balance of $3,800 [i.e. can

the judge include future installment

payments in the judgment?] or 2)

can i file additional small claims cases

based on the same promissory note

if defendant defaults on future

payments, or 3) must i wait until the

full 20 months have passed with no

payments to have any chance of

recouping the full $3,800 owed

(worried, however, that

defendant may disappear in the

mean time), or 4) other options or

suggestions?


Asked on 9/18/08, 12:42 pm

1 Answer from Attorneys
Stephen Lombardi Lombardi Law Firm

Re: Small Claims Court and installment payment promissory note

A lawyer would need to review the promissory note before answering this question. There is the issue of electing remedies that needs to be considered. Because that's really what you're talking about when you discuss what damages to sue for. Can you collect a judgement from this person? If not then you'll want to strongly consider seeking return of the car. Judgements can be worthless, worth no more than the paper they are written on. Does this person own any assets that are not exempt from execution? That is an question that can be answered only after doing an asset search in the county and state where they reside. See a lawyer, it's the best answer I can give you.

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Answered on 9/19/08, 10:10 am


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