For business owners, default or delinquent debts can wreak havoc on the overall financial outlook. If you hold several outstanding debts which are nearing or already in default, it may be time to speak to a New Jersey collections lawyer about enforcing the terms of the promissory note. New Jersey collections laws require a heightened understanding of civil procedure and notification rules of which not every attorney is aware. To protect your rights and streamline the process in recovering your commercial debts, contact an experienced New Jersey collections lawyer right away.
New Jersey Collections Attorney Explains the Process of Enforcing a Promissory Note
In general, the terms of the promissory note will govern the determination of default. The note should contain provisions regarding late payments, late fees and the chain of events upon a borrower’s official default. Your New Jersey collections lawyer will explain that not every promissory note contains identical terms and you should check with your lawyer prior to initiating default proceedings.
The first step upon default is to send a demand letter to the debtor. This letter puts the debtor on notice that he has defaulted on the loan and you have opted to call the entire amount due. In the letter, your New Jersey collections attorney will include the total amount due with interest and penalties as well as the due date. The letter may also contain other statutory language relating to fair debt collection practices, which is required under federal law.
Once the demand letter is sent, your New Jersey collections lawyer may then file a lawsuit in New Jersey Superior Court. The promissory note will be attached to the complaint and will serve as evidence of the existence of the debt. The debtor may attempt to object to the debt or litigate the issue. However, once a judgment is entered, you and your New Jersey collections lawyer can start the process of enforcing the judgment lien through asset sales and public auction.
Contact a Reputable New Jersey Collections Lawyer Today
For help enforcing your promissory note, we encourage you to contact a New Jersey collections attorney right away. For thorough legal advice, call Snellings Law LLC at 973.265.6100.