What are your rights when collecting on a personal loan?
If someone provides a personal loan to someone, they assume to be paid back in full within a predetermined date. But, in reality, many people fail to pay their debts.
What can you do to recover the amount owed to you?
Before resorting to any drastic strategies to collect the debt, it is important to know the law.
Always sign a promissory note before any money swaps hands
A promissory note refers to a note payable or a “Note.” It is a written contract wherein one party makes an unconditional promise to pay a sum of money to another party, and the other party agrees to repay the debt. The promissory note will also contain specific repayment terms.
The promissory note should outline the conditions that the borrower will have to pay, such as:
The cases that have an executed promissory note are simpler to prove, and the other party cannot challenge the specifics of the terms.
Collection of a Personal Loan
Some borrowers will not be able to pay back the loan, regardless of how politely your request. And you cannot throw a person in jail for not paying their debts.
You can act against the debtor; however, this is not something you should take on by yourself. It is always better to consult a lawyer before taking any action.
If a debtor does not comply with your initial request to pay, a debt collection attorney will sue on your behalf to collect an individual loan.
If you are trying to collect a personal loan, seek help from an experienced debt collection attorney
Diwan Law has represented clients in a range of debt collection matters. Our goal is to collect the entire amount due to you.
Are you ready to take the next step in collecting money owed on a personal loan?
Schedule a complimentary consultation to review your rights in collection with an Atlanta business collection attorney today.
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