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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. 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. Be sure to check that the default clause in your Promissory Note complies with the law in your jurisdiction. Your local laws will determine the number of days within which the borrower may respond before legal proceedings may be instituted. The notice should be sent by registered mail or handed personally to the defaulting borrower and ideally proof of delivery should be obtained. Sending a written Notice of Default is very importantīefore any legal action can be taken against non-payment of a personal loan or promissory note.

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