Does Someone Owe You Money? Landlords and others, PROMISSORY NOTE, One of your most important tools!

At a young age, John Holbrook was taught the lumber business by his mother and father, Lucile and Burnell Holbrook, who owned lumber yards in Oregon. When a customer wasn't able to pay their bill at the lumber yard, Lucile would prepare a promissory note for the balance due, the terms to pay it (the amount of the weekly or monthly payments plus the date it was due) and have the customer sign it and date it.

This technique translates to landlords and tenants.

A tenant may get a month behind in rent or owe money for something that occurred while they rented. (Maybe a bad check).Most people are willing to sign a promissory note for what they owe, especially if they agree to the terms of payment, which should be discussed with them before they are asked to sign the note. A landlord, or for that matter anyone who may need to collect money, should sit down with the person who owes and discuss what they can realistically pay each month to pay off the debt.

Even if it's only $10 a month.

That would be written into the note. If the person with the debt does not make a payment as they agreed, the landlord goes to the court house and files a claim against them. This is done because by this point, it becomes clear that the person with the debt is not planning to pay.

With the signed promissory note in hand, the landlord shows up for court.

It becomes clear very quickly to a judge that the signed note is good and the tenant definitely agreed that they owe the money, so if they argue they don't; the note pretty much proves they do. Wages can be garnished and eventually the landlord will usually get the debt paid.

Hopefully, you never get to the point where someone owes you money, but if you do, keep the promissory note in mind.