we loaned a friend in another state money, had them sign a contract in front of a notary and now they are giving us excuses as to why they haven't been able to pay us back, what can we do? Garnish wages?
Answer
Yes, after you sue and get a judgment. Since they live (and presumably work) in another state, you'll have to get another lawyer in that state to do the garnishment. How much did you loan them, and is it worth the months (at least) of time and expense?
Answer
As you have learned, never loan money you can't afford to lose. You will need to go to the other state, file a suit (preferably with a lawyer, which will add to your costs), attend court, try to win, and if you win, depending on the laws of that state, unless they bankrupt, you can attempt the remedies in that state law which may or may not include garnishment.
Answer
I agree with attorneys Riddle and Ashman. You will have to go to the state where the person lives to sue them. The amount owed will dictate whether you can sue in small claims or not. I would try re-posting your question and directing it to a lawyer who practices in that state. You will need to find out what the statute of limitations is in that state and whether you need to send a demand letter to start the statute running (no attorney here has seen the promissory note so I don't know if it was a demand or installment note or how far behind it is or if the debt can be accelerated). You also need to find out about the laws for enforcing any judgments in that state. Not all states allow wage garnishment (4 states do not have it - NC, PA, TX and SC). And for those that do, wage garnishment can vary between 10% and 25% of disposable pay. Does the person work as a W2 employee or are they self-employed? What other assets do they own free and clear? What about bank accounts? Assets owned free and clear can be seized by the sheriff and sold and bank accounts can be levied too. But all of this requires you to get a judgment first.
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