Legal Question in Credit and Debt Law in California

We are a non profit, that had a treasurer "borrow" a significant amount of funds. Respect for the spouse and family we did not press charges and only a small handful know, but this person is not making much of an attempt to repay either ( at first yes, but now, not really). The three year statute to press charges is up this fall 2012. Is there wording in a promissory note that we can have signed that bars the person from filing for bankruptcy or some other means of dismissing the funds owed? I don't know if taking them to court would be a good option at this point either (over $5000 still owed).

I also just found out where this person works and am holding off on being specific to their past but feel I should some how warn them to keep their eyes open to discrepancies in the books.

Thanks.


Asked on 8/10/12, 1:56 am

1 Answer from Attorneys
Scott Jordan Jordan Law Office

If you have a promissory note with language prohibiting the debtor from filing bankruptcy, it is a non-enforceable provision.

Is the debtor willing to file a promissory note? Also, as trustees of the non-profit, you may have a duty to sue the debtor and obtain a judgment and garnish his wages. Your duty of loyalty is to the non-profit and not to the spouse or friends.

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Answered on 8/10/12, 2:53 pm


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