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WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17210
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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We need to put together a promissory note between three partners

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We need to put together a promissory note between three partners that are responsible for paying back the amount of money that is borrowed to get their business started. We want to make sure that this notes cannot be affected by bankruptcy. Is there a clause that we can put in the note that each partner understands that they can't get out of the responsibility of the note if they file BK?
Thanks

WALLSTREETESQ :

This is a common issue,

WALLSTREETESQ :

their is no clause that exists to protect a note from a bankruptcy, if one exists, it would be used for every credit transaction,

WALLSTREETESQ :

in order to avoid this issue, you can create secured notes,

WALLSTREETESQ :

secured notes attach to collateral, so if only party defaults or files bankruptcy you can take the collateral, such as real estate.

WALLSTREETESQ :

Another option,

WALLSTREETESQ :

is to have a co signor or guarantor so if one party

WALLSTREETESQ :

defaults you can sue a spouse or the co signor

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