Legal Question in Credit and Debt Law in California

Made my former employer a $100k loan when he said he couldn't make payroll. Have a loan document saying the loan was to be paid off in full on 2/20/09. I have only received 2 $1000 interest payments. Terms of loan were 12% interest per annum plus $1000 per week penalty for late payment. Total owed is around $140k now. Loan was signed by the CEO of the company.

They won't give me any idea when they can pay this loan. What recourse do I have?


Asked on 9/28/09, 4:08 pm

1 Answer from Attorneys
Robert F. Cohen Law Office of Robert F. Cohen

The only way to force collection is to file a lawsuit. The trouble there is, if the employer files for bankruptcy protection, you might be wiped out. Was there a personal guarantee by the CEO as well? If so, he could also be named as a defendant in the lawsuit.

Read more
Answered on 9/28/09, 4:19 pm


Related Questions & Answers

More Credit, Debt and Collections Law questions and answers in California