How do you draw up your own legal IOU?

Answer by  patti (29325)

This document certifies that Jack Doe agrees to loan $100 to Simon Dawe. Simon Dawe acknowledges the loan and agrees to pay it back (by this date) OR (at $10 a week starting [this date]). The money was loaned in (cash, check, money order) on Friday, Monday Day Year. --Then print both names, have both parties sign and date.

Answer by  jf12 (179)

Write a document that contains the people's names involved and the date. Include the amount of money owed and the payment terms and due date. Have everyone sign their names and the date that they signed. If available, a witness could also sign it.

Answer by  cynosure (376)

Legality of IOUs is determined by state law, so first consult your state's debtor/creditor rules. But briefly and generally, what you want your IOU to include is a recitation of the debt amount and interest, if any, and the date after which it is due (so you can sue for non-payment if necessary). A notary witness is also recommended.

Answer by  Scootron (112)

You write: "I ,(your name), promise to pay to the order of (name of person you owe), the sum of (amount), upon demand." Then date it and sign your name.

Answer by  tamarawilhite (17883)

At a minimum, the IOU must state who owes the money, to whom they owe it, the amount borrowed, interest rate if one is charged, and when the debt is to be paid. Notarizing it, which can be done in a bank, helps if legal action is taken.

Answer by  BeefStrule (690)

A really simple way of doing this is to get a piece of loose leaf and write your name on it. Write in really large numbers how much you owe the person and then sign it, "Sorry, I owe you this money". Put this on the windshield of their car.