Whether you're borrowing money or providing a loan to someone else, a Promissory Note is usually the best way to establish a record of the transaction and make sure that repayment terms, for example, are clear and fair.
However, an “IOU†is generally regarded as only an acknowledgment of a debt, not a promise to pay the debt. However, this form is a written promise to pay a debt.
You must fill out an Answer, serve the other side's attorney, and file your Answer form with the court within 30 days. If you don't, the creditor can ask for a default. If there's a default, the court won't let you file an Answer and can decide the case without you.
In California, small claims court is designed for resolving disputes involving amounts up to $12,500 for individuals, making it a suitable venue for your case involving $2,000 in damages.
If the defendant lives in the county where you filed, you will likely receive a hearing within forty (40) days of filing the complaint. If the defendant lives outside the county where you filed, you will likely receive a hearing within forty (40) to seventy (70) days of filing the complaint.
Small claims basics Generally, you can only sue for up to $12,500 in small claims court (or up to $6,250 if you're a business). You can ask a lawyer for advice before you go to court, but you can't have one with you in court.
1. Who can file a claim? An individual, which includes a sole proprietorship, may file a claim up to a maximum of $12,500. Only the actual party to the claim may file.
An individual, which includes a sole proprietorship, may file a claim up to a maximum of $12,500. Only the actual party to the claim may file. You must represent yourself at the small claims hearing. Attorneys or others are not permitted to represent a party in small claims court.
In California, there is generally a four-year limit for filing a lawsuit to collect a debt based on a written agreement.
$5,000 in credit card debt can be quite costly in the long run. That's especially the case if you only make minimum payments each month. However, you don't have to accept decades of credit card debt.
Here's a step-by-step guide that outlines the actions a business should take before moving forward with a collection agency. Contact the Debtor. Send a Demand Letter. Consider Negotiation. Hire a Collection Agency. Provide Documentation. Monitor Progress. Consider Legal Action.
When it comes to credit card debt relief, it's important to dispel a common misconception: There are no government-sponsored programs specifically designed to eliminate credit card debt. So, you should be wary of any offers claiming to represent such government initiatives, as they may be misleading or fraudulent.
