Money owed

[pele]

I have a friend who has moved to another state. Her son owes her a substantial amount of money, charged to her credit card. Before leaving she got him to sign a promisory note stating that he owed the money and the charges on the credit card were his and that he would pay her back, the credit card is in her name. My question is, she is over 65, he emptied her bank account, if because she is so far away he stops paying her, she will not be able to pay this back, can she declare bankruptcy, if so, will the creditors go after him because he signed a note (it was notarized) that he owed her the money?? Thank you.

 

[I AM ALWAYS LIABLE]

I have a friend who has moved to another state. Her son owes her a substantial amount of money, charged to her credit card. Before leaving she got him to sign a promisory note stating that he owed the money and the charges on the credit card were his and that he would pay her back, the credit card is in her name. My question is, she is over 65, he emptied her bank account, if because she is so far away he stops paying her, she will not be able to pay this back, can she declare bankruptcy, if so, will the creditors go after him because he signed a note (it was notarized) that he owed her the money?? Thank you.

My response:

No, the creditors will not recognize, nor abide by, a separate agreement / contract she entered into with her son. They will only recognize the contract they have with her, and in the event of default, will hold only her "hand to the fire" under their contract provisions; not her son.

Her recourse, in the event of default, would be to sue her son in a court of "competent jurisdiction" in her State. Since you didn't mention her State name, or the amount of the Promissory Note, I cannot tell you which court in her State would have "competent jurisdiction" - e.g., Small Claims Court or higher.

IAAL

 

[pele]

money owed

Thank you for your information. I did not mention the state she moved to because she may not stay there. The amount owed, $18,000. When I hear from her and have an address I will forward your answer to her. I hope that this never ends up in court.