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collection action on promissory note Michigan

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  • collection action on promissory note Michigan

    I am owed $500 on a promissory note that is scheduled to be paid in full in January, 2012. I am not charging the borrower any interest or late fees. The person is now three payments behind. I sent them a letter asking them to bring their payments current. I have not received a response. I do not anticipate the person will make any additional payments.

    I would like to take the person to small claims court to get a judgment against them. The note states if the borrower does not cure the default after I give them a notice with a specified time to cure the default, I can declare the entire unpaid amount due and payable. This notice of default must be given as required by law or written agreement. The note itself does not specify a specific type of notice or a specific period of time to cure a default. Can anyone tell me if Michigan law requires a specific form for the notice or specific period of time to cure the default?

    Would it be preferable to go for the acceleration of payment or wait to January until the loan is completely due and payable? My concern with waiting is the person may move and I will not be able to locate them.

    I would appreciate any suggestions or comments.

  • #2
    There is a notice of default form that is required in Mi. on the default of a
    promissory note. The court clerk might have them. If not, you can get one
    from a lawyer's office & also order them off the internet for a small fee. You
    need to be sure you ask for Michigan. My reference indicates a time period of
    at least 15 days in Mi. but generally 30 days is given. You could verify with the
    court clerk or a lawyer. There may be instructions with the form.

    This link might also be of interest to you.
    http://www.ehow.com/how_6907251_reco...-michigan.html

    There's no way to know if the person will move or not - you can start the process
    now or wait until full amt. due.

    Good luck.
    Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

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