How to Get Repayment of a Promissory Note
My question involves small claims court in the state of: Colorado
Hello,
I loaned a friend $4,000 cash February 3rd 2011 (I have proof I had $4,800 in cash from a tax stub and a picture with dates on both.). The loan was to be satisfied in one Lump Sum payment on April 7th 2011 as stated in the note.
Today is April 13th 2011, I have received no payment and my calls/text messages have been ignored.
Unfortunately, this note is unsecured, but I do know this person has a bank account and where he is currently working 4-5 days a week.
The note is signed and dated by myself, a witness, and of course the borrower. Also stated in the note, "If the Lender prevails in a lawsuit to collect on this note, Borrower will pay Lender's court costs, collection agency costs, and attorney's fees in an amount the court finds to be reasonable.".
I would like to take full advantage of this option and possibly the $1,000 late fee that is also stated in the note.
I would also like to add, I recently discovered the Borrower has moved and in our agreement it states "The Borrower must promptly inform the Lender of any change in name or address." . This is an additional breach in our agreement.
Even though this is only $4,000, I would like to use an attorney's service because the borrower states he will pay for the fees within the agreement and I feel using an attorney will reflect professionalism in court.
I am at the very beginning of this inconvenience and I have not taken any legal action at this point. However, I have informed the Borrower through a text message (because he will not answer my calls.) I will be looking into legal advice if he refuses to pay, and I e-mailed him to document this.
I would appreciate any helpful advice, opinions, or other steps I should take in this matter.
Thank you,
T.