What can I do to (or How do I) collect on a promissory note that I accepted from the sale of my business?

Asked about 4 years ago - Norcross, GA

I accepted a promissory note in the state of MA for the balance due on the sale of my business which was located in MA to the buyer. I now live in GA. The note was issued in MA on 01/31/08 with a 4 yr pay back schedule beginning on 03/01/08. The buyer is in default, having NEVER made a payment on the note. The buyer subsequently closed the business after I sold it to him and moved out of MA, and believed to be living in TX. The buyer signed the note as managing director of a California LLC AND as an Individual. The terms state that no notice to Borrower is required when the loan is in default. This note is part of the entire Purchase and Sale agreement which has a clause that states the governing law is the Commonwealth of Masschusetts.

Attorney answers (3)

  1. Martin Gregory Hilliard

    Contributor Level 9

    1

    Lawyer agrees

    Answered . You need to speak with an attorney in MA or do some research on their website there. Their laws are different from Ga.
    MGH

  2. Jason Baine Thompson

    Contributor Level 9

    1

    Lawyer agrees

    Answered . Since the Note is governed by the laws of the Commonwealth of Massachusetts, you will need to consult an attorney in Massachusetts to advise you on the process. Even though you live in Georgia, you will have to proceed in Massachusetts. JBT

  3. Mitchell Paul Goldstein

    Contributor Level 20

    1

    Lawyer agrees

    Answered . Massachusetts law may apply, but you can sue the person in Texas if you can find him there or in Massachusetts. Contact a Massachusetts attorney that handles business issues. There may be more to this issue than a collections case.

    [I am a Virginia-licensed attorney. This communication is intended as general information and not specific legal advice, and this communication does not create an attorney-client relationship.]

Related Topics

Small business LLCs

An LLC (limited liability company) is a business entity that has elements of both a corporation and a partnership (or sole proprietorship).

Debt

There are different types of debt, but all involve one person (the debtor) owing money to another (the creditor). Terms of repayment are governed by a contract.

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