What happens if you cant pay the promissory note?

Answer 1

That would be the decision of the person holding the note. They could if they so choose pursue litigation in the proper court of jurisdiction to recover monies owed. A promissory note is a legally binding agreement and is treated as such in a court of law.

Answer 2

Your creditor can sue you in court and obtain a judgment against you. Once the judgment is rendered the debt begins to accrue interest until it is paid. In Massachusetts the interest rate is a whopping 12%. Once the creditor wins their judgment they can request a judgment lien that can be recorded in the land records. Your real property cannot be sold or refinanced until the lien is paid. They can also ask the sheriff to seize any property you own to satisfy the debt, including your car.

Answer 3

In brief, you could be taken to court, and/or have collection agency problems having a negative affect on your credit report.