IOU Acknowledgment: How to Secure a Loan Between Individuals?

An IOU acknowledgment is a written document in which a person (the debtor) commits to repaying a sum of money to another (the creditor). It serves as legal proof and facilitates debt recovery in case of non-payment.

Why is it important?

For loans of €1,500 or more, French law requires a written agreement. Even below this amount, having a formal document helps prevent disputes. For loans of €5,000 or more, a tax declaration is mandatory.

How to draft it properly?

To be valid, an IOU acknowledgment must include:

✅ Full identity of both parties

✅ The loan amount in numbers and words

✅ The date and repayment terms

✅ The debtor’s signature

A handwritten document is recommended to strengthen its legal value.

What if the debtor doesn’t pay?

A well-drafted IOU acknowledgment allows for quick action: formal notice, payment order, or even asset seizure.

A lawyer can assist you in drafting a secure loan agreement or taking legal action in case of non-payment.

📞 Need assistance? Contact me to protect your interests.