Promissory Note Collection
A signed promissory note is one of the strongest collection instruments in New York. If you loaned money under a note and the borrower stopped paying, our firm can enforce the note quickly, often faster than an ordinary lawsuit. Call 212-233-1233 to discuss your note.
The Accelerated Judgment Procedure
New York gives the holder of a promissory note a special shortcut called CPLR 3213, which allows a motion for summary judgment in lieu of a complaint. Instead of filing a complaint and waiting through months of discovery, we can move for judgment at the very start of the case. When the note is unconditional and the default is clear, the borrower has a heavy burden to come up with a real defense, and many cases are decided in a single motion.
What Makes a Note Enforceable Under This Procedure
To qualify for the accelerated procedure, the note must be an instrument for the payment of money only — an unconditional promise to pay a sum certain. We review the document to confirm it qualifies and, if it does not, pursue the debt through an ordinary breach of contract action instead. Either way, the goal is a judgment that we can enforce.
Interest and Default Terms
A well-drafted note usually sets its own interest rate, and New York courts will generally enforce the agreed rate up to the legal limit. Many notes also include a default interest rate, an acceleration clause that makes the entire balance due upon a missed payment, and an attorney's fee provision. We pursue all of these contractual remedies in addition to the principal.
Guarantors
If the note or a separate guarantee is signed by a guarantor, we pursue that person along with the borrower. A guarantee on a note is itself frequently enforceable through the same accelerated procedure, which is a powerful tool when the primary borrower has no assets.
Collecting the Judgment
As with any debt, the judgment on a note still has to be collected. We locate the debtor's assets with information subpoenas and reach them through bank levies, restraining notices, and income executions.
To enforce an unpaid promissory note, call 212-233-1233 or email [email protected].
About the Author
Albert Goodwin Esq. is a licensed New York attorney with over 18 years of courtroom experience helping creditors and businesses collect debts, enforce judgments, and recover money owed to them across New York City and its suburbs. He can be reached at 212-233-1233 or [email protected].
