The creditor (holder of the note) would need to file a lawsuit in the court of jurisdiction where the debtor(borrower) resides. If the creditor prevails in the suit a judgment will be entered against the borrower. The creditor can then execute the judgment in accordance with the laws of the debtor's state.
Even though you file bankruptcy, you still have to honor the promissory note. If you are ordered to make installment payments then you will have to pay the promissory note in installments.
You will need to take the person to court. Once you have a judgment in your favor you can then file a lien with the courts.
In an action on a promissory note, the promissory note itself is evidence. Give it to your attorney, who is filing the suit, because he will need all the relevant evidence to pursue the lawsuit.
You do have a right to a COPY of your promissory note, if for no other reason than to assemble, collate, and maintain a complete file for your own legal records.
wording for promissory note with collateral
someone signed a promissory note that owes me money. what is the next step i need to do to get paid?
No....a promissory note is not valid without a consideration.
Generally, if a promissory note is not signed, it is not enforceable. The statute of frauds may also make the promissory note unenforceable.
sample letter of promissory note
Interest on the unpaid judgment is 9% per year (simple interest, not compound interest). Unpaid judgments can affect the judgment debtor's credit rating.
A promissory note is an unsecured note. It doesn't create any lien on a person's property. Generally, if the borrower defaults on the note the creditor must sue and obtain a judgment within the statute of limitations for the promissory note. If successful in court, the creditor can request a judgment lien that can be recorded in the land records against the debtor's real property. Their property cannot be sold or mortgaged until the debt is paid. State laws vary so you need to check the laws in your state.
I have the promissory note to my house.