1. Free Legal Help, Legal Forms and Lawyers. TheLaw.com has been providing free legal assistance online since 1995. Our most popular destinations for legal help are below. It only takes a minute to join our legal community!

    Dismiss Notice

Promissory Note Breach of Contract

Discussion in 'Consumer Law, Contracts, Warranties' started by Bboy, Mar 8, 2019.

  1. Bboy

    Bboy Law Topic Starter New Member

    Messages:
    2
    Likes Received:
    0
    Trophy Points:
    1
    Jurisdiction:
    Colorado
    In Sept of 2017 I loaned who was a friend at the time, $60k. We did the loan through a notarized promissory note, signed by myself, the debtor and the notary. The loan was to begin repayment in January 2018 and payments of 5K each month for 12 months till December of 2018 were to be made un-till the full 60k loan had been repaid. All of this was detailed in the promissory note along with reimbursement of legal fees if the promissory note was broken. The note was not paid and I only received a total of $1000 in back in April of 2018. He claimed all year (2018) that he was trying to get a home equity line of credit (HELOC) to just go ahead and pay the loan all at once. This never happened and I have only received $1000 of the total 60k. I formally mailed a letter notifying he was in default in June of 2018. At this point I want to know what the statue of limitations are for this type of debt in Colorado and also what exactly must I do to sue. I'm planning to do "pro se", because an attorney I spoke to wants a $3000 retainer just to have him served a court papers that he's being sued and I'm sure it will cost even more to have the attorney appear in court on my behalf. I know the guy has money because he is the chief operating officer with a local construction company, has a mortgage on a home valued at $400k and in August of 2018 bought himself a new 2018 GMC pickup valued around $65k, I assume he financed the truck. Also the money he borrowed was supposedly to go towards a different construction company startup that turned out he never started and used the money for who knows what. So any advice that can be given on what exactly the steps I need to take going forward would be greatly appreciated. Thank you
     
  2. army judge

    army judge Super Moderator

    Messages:
    29,891
    Likes Received:
    3,913
    Trophy Points:
    113


    You can sue the debtor no more than six years from the date the note was signed.

    Colorado Revised Statute 13-80-103.5 sets forth the following time limitations for the collection of such debts:

    (1) The following actions shall be commenced within six years after the cause of action accrues and not thereafter:

    (a) All actions to recover a liquidated debt or an unliquidated, determinable amount of money due to the person bringing the action, all actions for the enforcement of rights set forth in any instrument securing the payment of or evidencing any debt, and all actions of replevin to recover the possession of personal property encumbered under any instrument securing any debt…

    The six years starts at the point the debtor defaulted on the loan or it otherwise came due.

    ===============================

    Bear in mind even if you prevail in court and receive a judgment indicating Deadbeat owes you $XXX,XXX, you must first perfect How Is a Judgment Perfected? the judgment then endeavor to COLLECT that judgment.

    Perfecting the judgment is perfunctory, collecting the judgment is often unsatisfying, unrewarding, and unfulfilling.

    You're dealing with a deadbeat, shyster, grifter, and scammer, mate.
     
  3. Bboy

    Bboy Law Topic Starter New Member

    Messages:
    2
    Likes Received:
    0
    Trophy Points:
    1
    Since I know he is the "COO" of a construction company and who he banks with couldn't I just have his wages garnished if I won judgement?
     
  4. army judge

    army judge Super Moderator

    Messages:
    29,891
    Likes Received:
    3,913
    Trophy Points:
    113


    You can try.

    No judgment enforces itself.

    Once you obtain your judgment your quest to collect money from the deadbeat has only just begun.

    Unless your opponent voluntarily pays the judgment, you will need to perfect the judgment and then enforce the judgment.

    Enforcing the judgment will take more time and unfortunately more money, but if the judgment is substantial, enforcing the judgment can become a worthwhile exercise.

    The proceedings and practice relating to entering and recording judgments is governed by Colorado statute. Rule 58 governs “Entry of Judgment.” It states that upon jury verdict or a decision by the court, the court shall promptly prepare, date, and sign a written judgment and the clerk shall enter it on the register of actions as provided in C.R.C.P. 79(a).

    The court will usually sign the judgment in the absence of the parties, so Rule 58 requires the court to immediately mail or e-serve a copy of the signed judgment to each party who has previously appeared.

    After you prevail in court you obtain a judgment, then you will want to make sure that the judge signed the judgment, and the clerk enters the judgment on the register of actions.

    That is the only way to ensure you perfected your judgment.

    You should be able to see whether the judgment has been entered by checking Colorado’s e-filing system called “ICCES”, where the court will provide a separate link to the judgment docket.

    In some cases your opponent may question the validity of a judgment. The appearance of a judgment upon the records of a court raises a strong presumption that it is the judgment of the court. While some cases hold that, as between the parties, the judgment exists from the time the jury renders its verdict or the court acts, notwithstanding that it was not properly entered, other cases hold that any order or judgment must be entered of record to be effective. Thus, although a judgment may be signed and delivered to the office of the clerk, it is not effective until it has been entered on the docket.

    https://www.courts.state.co.us/Form...udgment and Issuing a Writ of Garnishment.pdf

    There are many ways deadbeats manage to avoid ever paying a judgment.

    The best and sure fire way to evade ever paying is to file bankruptcy.

    I suggest you proceed step by step, and don't spike the football until you've collected your loot.
     

Share This Page