Personal Promissory Note to another person - how affected

[1aliasfan]

My husband executed a personal promissory note to an ex-wife for $4000, which is to pay her back for garnishments for two vehicle repossessions. I have included this with my BK paperwork that I am giving to our attorney today, but does anyone know how this will work? Will this a priority or non-priority unsecured?

Any thoughts?

[AngelinaCatHub]

It will be treated equally with all other non-secured debt. After Discharge, he may pay it back to her outside of the bk, but ONLY after the discharge. She will get whatever there is to give of your estate, if anything, equally with the others. 'Hub

[EricaCallaha]

In addition to 'Hub....you can CHOOSE to pay her the balance of the note after the bankruptcy. Technically, she is an unsecured debt in your plan and she has to take what she gets.

Good luck.

[justbroke]

FYI, it's also non-priority debt.