How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
A new question is answered every 9 seconds
Ask a Bankruptcy Law question
Type Your Bankruptcy Law Question Here...
characters left:
Bankruptcy Lawyers are Online Now

Questions about Promissory Note Law

A promissory note is a legal document that is written between two or more individuals that make a promise to repay either a loan or debt according to certain specific conditions. Normally there is a time that is stated on the promissory note, how many payments are needed to be paid, and when they are due. A promissory note will state the parties involved, the amount of responsibility and some type of reading of the issue for the responsibility, and often will include the terms of the repayment and if any interest rate will be included. A promissory note can also include an “acceleration clause”, which will make the whole amount due if a payment is not made. Below are the most commonly asked questions about laws related to promissory notes.

Is someone still responsible for a promissory note that was signed for a mortgage after they have filed for Chapter 7 Bankruptcy?

This person would no longer be responsible for the promissory note. In a Chapter 7 Bankruptcy filing this would be removed from their personal responsibility on the mortgage, but not if there was a lien against the property. If the property was foreclosed, then the lender will have the ability to sell the property to fulfill the debt, but then will not be able to get a judgment against this person for the part of the debt.

If a person had signed a promissory note that stated “erased if bankruptcy is filed”, if filing for bankruptcy would the promissory note still be in affect?

The person’s right to file for bankruptcy is protected by the United States Constitution. It is not legally possible for someone to sign another’s right away to file for bankruptcy. In the case that the promissory note says that this cannot be removed in a bankruptcy, it can in fact be removed. If this statement was binding, then it would be the same as signing away a person’s right. This is not usually enforceable.

Can someone place a section in a promissory note that the note cannot be released when filing for bankruptcy?

In most situations, a non dischargeable section in a promissory note will not be enforced. The bankruptcy court will have the right to ignore the section in the debt, which would normally be allowed to be removed when filing for bankruptcy.

If someone files for bankruptcy because they cannot pay back a promissory note, can the Limited Liability Company come after their personal possessions in New York?

If this person has signed a personal agreement, then the debt would only be allowed to be removed in the corporate bankruptcy for this corporation. The Limited Liability Company can in fact come after who has signed the promissory note, unless this person does file for bankruptcy. So, when making the decision to file for bankruptcy, the promissory note does not have to be listed. When the promissory note is removed, the debt is also removed and the creditor does not have the right to continue to collect their money. Now, if there is any collateral that is listed on the promissory note, then a lien on the collateral will not be removed. If there is a collateral this person is required to either pay the creditor in order to keep the collateral, or they will need to give the collateral up in order to protect the promissory note.

When signing a promissory note, the individual will need to read carefully over the agreement, and make sure they understand everything that is included in the promissory note. For more information on a promissory note, and to get answers to any other questions you may have about a promissory note, you can contact Experts to understand the legal implications as applicable in your case.
Ask a Bankruptcy Law question
Type Your Bankruptcy Law Question Here...
characters left:
Bankruptcy Lawyers are Online Now

How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
< Last | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin Kernersville, NC
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther Woodstock, NY
  • Thank you so much for taking your time and knowledge to support my concerns. Not only did you answer my questions, you even took it a step further with replying with more pertinent information I needed to know. Robin Elkton, Maryland
  • He answered my question promptly and gave me accurate, detailed information. If all of your experts are half as good, you have a great thing going here. Diane Dallas, TX
 
 
 

Meet The Experts:

 
 
 
  • Ron

    ASE Certified Technician

    Satisfied Customers:

    21109
    23 years with Ford specializing in drivability and electrical and AC. Ford certs and ASE Certs
< Last | Next >
  • http://ww2.justanswer.com/uploads/FO/fordguy4u/2011-12-17_222940_HPIM1257.64x64.JPG Ron's Avatar

    Ron

    ASE Certified Technician

    Satisfied Customers:

    21109
    23 years with Ford specializing in drivability and electrical and AC. Ford certs and ASE Certs
  • http://ww2.justanswer.com/uploads/lyeung1/2010-07-25_032152_tn_IMG_0241.JPG Dr. Y.'s Avatar

    Dr. Y.

    Urologist

    Satisfied Customers:

    18364
    I am fellowship trained specializing in general urology and reconstructive urology.
  • http://ww2.justanswer.com/uploads/docjohn174/2008-12-13_170143_johnask.jpg John's Avatar

    John

    Home Appliance Technician

    Satisfied Customers:

    13453
    Appliance repair business owner for over 43 years.
  • http://ww2.justanswer.com/uploads/MU/multistatelaw/2011-11-27_173951_Tinaglamourshotworkglow102011.64x64.jpg Tina's Avatar

    Tina

    Lawyer

    Satisfied Customers:

    8471
    JD, BBA Over 25 years legal and business experience.
  • http://ww2.justanswer.com/uploads/dermdoc19/2010-09-30_160749_Photo_122807_015.JPG dermdoc19's Avatar

    dermdoc19

    Dermatologist

    Satisfied Customers:

    3824
    30 years practice in general and cosmetic dermatology
  • http://ww2.justanswer.com/uploads/BI/birddoctor/2012-6-22_173214_birddoctor.64x64.png Dr. Pat's Avatar

    Dr. Pat

    Bird Veterinarian

    Satisfied Customers:

    3383
    25+ years working primarily or exclusively with birds
  • http://ww2.justanswer.com/uploads/RY/rydergar/2012-6-6_192240_IMG0328.64x64.JPG Dr. Gary's Avatar

    Dr. Gary

    Cat Veterinarian

    Satisfied Customers:

    3289
    DVM, Emergency Veterinarian, BS (Physiology)
 
 
 

Recent Promissory Note Questions

  • Hi, if I purchased my former partner out of business, paid

    Hi, if I purchased my former partner out of business, paid more than 60% and cannot afford to pay anymore because all the other debts that are taking me to chapter 7 and having only a promissory note without any asset to secure it, would chapter 7 erase it too?
  • Hi, I will become the private mortgage lender for a borrower

    Hi,

    I will become the private mortgage lender for a borrower purchasing a non-homesteaded single family home. Title will be vested in the borrower's LLC, and he will sign the promissory note, as both individual and as managing member of his LLC. Two separate signatures, each with their own designation.

    Question:

    If at some point in the future I am forced to foreclose, would it make it any more difficult for me to regain possession of the property if the borrower himself, or his LLC, or both, file for bankruptcy?

    I was under the impression that it would make no difference to me as the mortgage lender, since the property is not his homestead.

    Thank you in advance.
  • can a promissory note be inforced after 18 years if no attempt

    can a promissory note be inforced after 18 years if no attempt has been made to collect and now it is in an estate?
< Last | Next >