When two people borrow money with a promissary note and the note is not being paid can the lender sue just one of the borrowers or must they sue both for payment in full?
2 Answers from Attorneys
Yes, the lender can sue just one of the borrowers or both. Even if the lender sues both borrowers, the lender can collect the entire judgment from just one borrower. Of course, if the lender only sues one borrower, that borrower can add the second borrower to the lawsuit to share the responsibility. And if one borrower pays the entire judgment, that borrower can seek reimbursement from the second borrower.
As a Franchise Attorney I agree with the other attorney answer. Basically, it's called joint and several liability. The lender can pursue either or both. Consult with a good business or franchise attorney in your area for specific advice.
Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.
Franchise Foundations, a Professional Corporation
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