West Virginia Unsecured Promissory Note Overview
An unsecured promissory note in West Virginia is a loan agreement where the borrower promises to repay without pledging any collateral. The lender relies on the borrower's creditworthiness and the legally enforceable promise to pay. The maximum interest rate in West Virginia is 8% (default).
8% default rate; 6% legal rate; max varies by loan type. Unsecured notes carry more risk for the lender, so interest rates are typically higher than secured notes. However, the rate must still comply with West Virginia's usury laws.
If the borrower defaults, the lender's primary remedy is filing a lawsuit within West Virginia's statute of limitations (5 years (oral), 10 years (written)). The small claims court limit in West Virginia is $10,000, which is ideal for smaller unsecured loans.
8% (default)
Usury rate cap
5 years
Statute of limitations
$10,000
Small claims limit
25%
Max garnishment
West Virginia Legal Requirements
West Virginia has specific requirements for unsecured promissory notes:
Important: West Virginia Usury Laws
West Virginia's maximum interest rate is 8% (default). 8% default rate; 6% legal rate; max varies by loan type. Exceeding this limit may void the interest or result in penalties.
- Written Agreement: Must be in writing, signed by borrower, clearly stating loan terms
- Compliant Interest Rate: Must not exceed West Virginia's 8% (default) usury cap
- No Collateral Statement: Explicitly state that the note is unsecured with no collateral pledged
- Default Provisions: Events of default, cure period, acceleration clause, and collection remedies
- Personal Guarantee: Recommended for business borrowers to protect the lender
- Governing Law: Specify West Virginia law as the governing jurisdiction
Collection Remedies in West Virginia
If a borrower defaults on an unsecured promissory note in West Virginia, the lender has several collection options:
Send a Formal Demand Letter
Written notice demanding payment within a specified timeframe, creating a paper trail
File in Small Claims Court ($10,000 limit)
Fast, affordable, no attorney required for amounts within the limit
File a Civil Lawsuit
For amounts above small claims limits, file in West Virginia civil court
Enforce the Judgment
Up to 20% of disposable earnings. Bank account levies and property liens also available
Statute of Limitations in West Virginia
The statute of limitations for collecting on a promissory note in West Virginia is 5 years (oral), 10 years (written). After this period, the lender loses the right to file a lawsuit to enforce the note.
| Aspect | West Virginia Rule |
|---|---|
| Usury Rate | 8% (default) |
| Statute of Limitations | 5 years (oral), 10 years (written) |
| Small Claims Limit | $10,000 |
| Garnishment Rules | Up to 20% of disposable earnings |
Sample West Virginia Unsecured Promissory Note
Below is a preview of our West Virginia-specific unsecured promissory note template.
STATE OF WEST VIRGINIA
UNSECURED PROMISSORY NOTE
No Collateral Loan Agreement
LENDER:
Name: [Lender Name]
Address: [West Virginia Address]
BORROWER:
Name: [Borrower Name]
Address: [West Virginia Address]
LOAN TERMS
Principal: $[Amount]
Interest: [Rate]% per annum (max 8% (default) in WV)
This note is UNSECURED. No collateral has been pledged.
West Virginia Unsecured Promissory Note FAQ
Answers to common questions about unsecured promissory notes and collection procedures in West Virginia.
Official West Virginia Resources
Use these official resources for West Virginia lending laws and court procedures.
Other West Virginia Promissory Note Types
Need a different type of promissory note for West Virginia?
West Virginia Secured Promissory Note
Collateral-backed loan agreement
West Virginia Demand Promissory Note
Payable on demand, no fixed maturity
General Promissory Note
Standard promissory note template
West Virginia Loan Agreement
Comprehensive loan documentation
West Virginia Bill of Sale
Document property transfers
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