Legal Question in Bankruptcy in California

Re: Promisary Note and Bancruptcy

Based on your description the note is not "callable on demand" and provides for payment over time. If the investor has filed bankruptcy you contact the trustee in her bankruptcy case and make arrangements to continue to make payments on the note in the interim. The trustee will want to try to sell the note to raise money for the bankruptcy estate of the investor. Maybe you can do a deal with the trustee to buy back the note at a discount, or the trustee will sell it in an auction process. An experienced bankrutpcy attorney should be able to help you with strategy about how to buy back the note. We do a lot of work with California, if you need some names let me know. Regarding the lease guaranty claim, the effect of the guarantor's bankruptcy on your lease would depend on the specific provisions of your lease. Without having seen the lease can't get into that issue.

For more info. about business bankruptcy generally, please see our website at www.starrandstarr.com.

Hope that helps.

Best regards,