Legal Question in Credit and Debt Law in Texas
How do I collect on a $10,000 business loan I extended?
I extended someone a business loan (with a signed & witnessed Business Loan Aggreement) with first payment due August 1, 2001. I issued a 10 day late notice after 10 days. No payment has been made, what do I do now? Is this in the realm of ''criminal law''? If they make a partial payment and no further payment, does it then fall into the realm of ''civil law''? The amount with interest is $9,000-9,500.
thanks for help!
1 Answer from Attorneys
Re: How do I collect on a $10,000 business loan I extended?
Hello there --
A word of caution up front: be careful when attempting collection that you do not impinge on federal or state debt collection laws, err into the area of harrassment, or make improper threats of criminal actions. This should purely be a civil matter unless it can be shown that actual fraud occurred. Non-payment alone is NOT enough. You would need to follow the proper notice provisions of the agreement and then the debt collection practices acts, and then, if no payments or arrangements are made and accepted, you can proceed to county court and obtain a judgment that can be renewed and receive interest until paid. Although I obviously have some bias, I must say it is in your best interest to obtain counsel before proceeding. Hope this helps.
Should you have any questions or need to consult with me further, please feel free to e-mail me at: [email protected] or phone 254.756.5004 Thanks and all the best.
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