How long does a promissory note last and where do you take them?

Question

I have one from a friend from 2003 so I hope that it is still good. I don't know where to cash it.

Answer 1

You have a promisory note from a friend?? You can't really "cash" it. YOu can try to sell it to someone else but that would likely be at a discounted rate. There are companies called Factoring Companies who will buy notes from bank and other lenders for a percentage of it. For example, if the note is $1000 you might be able to sell it for $300 - $700. But other than that, the only person backing the promise is your friend. You need to collect from him.

And they "expire" when there has been no attempt to collect in 7 years.

Answer 2

Depends from state to state, since this is a consumer debt, and regulated by the states. I think it should be good for 5 to 7 years, unless there is a condition attached to it---e.g. if it expired, and you did not accelerate or call it, your rights will be diminished. I assume it is signed by the friend in his personal capacity, not as a company president or a trustee or something like that--that also can diminish your collection options.

My advice is to have him/her acknowledge and confirm the debt and the existence of the promissory note---specially if the signature is not notarized. You may also want to consult an attorney who specializes in debt collection.

In some states, you have file the note before you can notify collection action. Similarly, remedies of non-payment differ.

Answer 3

Take it to a lawyer then u will have 2 take whomever 2 court then u get your money or whatever u got the note sign 4.

Answer 4

I thought 7 years.

LC

Answer 5

That is indefinite my friend and there is no guarantee that it will be in this lifetime either.