promissory note and personal bankruptcy
In the mid 80`s I received cash from my father and gave him a Promissory Note back in exchange. In 1994 I went into personal bankruptcy. My Father was aware of this and it was mentioned by the Receiver to the Judge. A notice to all creditors was published in the Globe & Mail and my father knew of this. I was discharged in 1996. My father passed away in 2007.
The estate Executor, acting on advice from the estate lawyer, says the note is still valid and is deducting it`s value from my share of the estate. The monetary value of the Promissory Note has been added to the total value of the Estate.
My position is that it has a zero, or nil balance, and should not be considered in the estate distribution. Your comments will be much appreciated!
Posted from: Ontario
From the information provided, the promissory note is a debt that was listed in the bankruptcy and you would have legally been cleared from it. So what I would do is provide the estate Executor with a copy of your bankruptcy and discharge documents and this should be sufficient for him to recognize the debt has been extinguished. If they don’t recognize this then you may need to contact lawyer and have them address this issue on your behalf.