Sending a written Notice of Default is very important before any legal action can be taken against non-payment of a personal loan or promissory note.
The notice should be sent by registered mail or handed personally to the defaulting borrower and ideally proof of delivery should be obtained.
Your local laws will determine the number of days within which the borrower may respond before legal proceedings may be instituted. Be sure to check that the default clause in your Promissory Note complies with the law in your jurisdiction.
If you get no response to your notice of default from the borrower, you can file a summons and complaint with the regular court or the small claims court - if the amount owed falls within the limits of your specific small claims court.
Keeping proper records of payments made, receipts issued and finally the notice of default will all strengthen your case, should it become necessary for you to institute legal action to recover your personal loan.
Review the guidelines and additional legal information before using our sample legal documents. Please note that they are provided for informational purposes only and should be reviewed by an attorney in your jurisdiction.
Follow this link to access free promissory note forms and guidelines for their use.
Re: Promissory Note dated _____________________20____
in the original amount of
You are hereby notified that you are in default under the terms of the Note referenced above in that the installment due on the
_____ day of ___________________ 20_____
in the amount of
has not been paid.
As per the terms in the Note, demand is hereby made upon you for full payment of the entire outstanding balance in the amount of
inclusive of interest accrued to date and any other outstanding fees.
If payment of the entire amount is not received on or before the ______day of ____________________ 20____, legal proceedings shall be instituted against you and the costs of collection and attorney's fees shall be added to your account.
Your prompt attention to this matter is anticipated.
Name of Note holder: ___________________________