Legal Question in Credit and Debt Law in North Carolina

If you are unable to work out a mutually acceptable payment arrangement you may have no other choice but to file a lawsuit to recover the money. If the amount you seek to recover does not exceed $10,000.00, you will have to file your case in Small Claims Court a/k/a Magistrate Court for the county where the person resides. If you do reach a payment arrangement you should consult a lawyer to have it properly documented and otherwise protect your interests.

I agree with Attorney O'Neal with a slight modification. You indicate that you have a signed promissory note. I assume this note was a demand note since it provided that the note is payable in December of 2013.

However, December 2013 has not occurred yet and there is no technical breach. I don't know if you could successfully maintain a suit against her as of right now or not.

What I would recommend is that you write her a letter and send it by certified mail or UPS/FedEx and keep a copy for you. Recite the details and that she has expressed her intent to breach. See if she is willing to execute a modification of the note or what is called a novation whereby you will substitute a new note for the old one. Make the new note payable in installments at a reasonable rate of interest (something less than 16%). See how much she can afford per month - $50 or $100 or whatever you and she can agree on. Ask her to call you to discuss. Advise if she does not reach a new agreement and start making payments or pay the old note then you will have no choice but to pursue your legal remedies.

If you do not hear from her within 30 days after you send the letter the to her, then you can sue her in small claims in the county in which she resides any time after the due date of the original note.