Promissory note to grandmother in 1995 for $25,000. She passed away in 1996.
My brother who was executor of her estate is now demanding payment plus interest.
First time request/demand ever made.
Is this still enforceable?
If so, would I be able to declare bankruptcy ?
Today 07/30/2010
Bankruptcy Ontario: Free Information about Bankruptcy in Ontario
Debts never go away, so if you owed the money in 1995, you still owe it today.
The more relevant question is this: if you don’t repay the loan, what will happen? Will your brother, as executor of the estate, take you to court and sue you for the money? If he does, will he win?
I don’t know the answers to these questions. It is possible that the court will say that as executor your brother should not have waited 10 years to try to collect the money, so you may win the case.
The prudent course of action is to discuss this with your brother, and attempt to make a settlement with him. If you are one of the beneficiaries of the estate, if you repaid the money some of it would come back to you, so it may be possible to settle with your brother for less than the full amount owing, and save legal fees for everyone. Before entering into any legal agreement, you should consult a lawyer.
Regarding a bankruptcy, yes, if you filed for bankruptcy this debt would appear to be included and discharged in a bankruptcy. You should consult with a bankruptcy trustee for further details.