Springfield, IL asked in Contracts, Business Formation and Business Law for Illinois

Q: We sold our small business with a promissory note to receive payment after one year. Now they won't pay

The pastor has experienced financial difficulty. They have not filed for bankruptcy, however they have received funding from an investment group. The promissory note reads,This Promissory Note shall become due and payable prior to maturity without presentation, demand, protest or notice of any kind, all of which are hereby expressly waived, immediately upon the occurrence of any of the following events, unless the holder of this Promissory Note otherwise elects: If any amount of principal or interest on this Promissory Note shall not be paid within thirty (30) days of the date when due; or, in the event any proceedings shall be commenced against Payor under the Bankruptcy Act, or under any other law, whether state or federal, for the relief of debtors and such proceedings are not dismissed within thirty (30) days; or, in the event Payor makes an assignment for the benefit of creditors; or, in the event of an appointment of any Receiver or Trustee for Payor, or for any substantial part

1 Lawyer Answer
Bryan R. Bagdady
Bryan R. Bagdady
  • Oakbrook Terrace, IL
  • Licensed in Illinois

A: If a written promissory note, signed by the parties, is not paid when due, then the holder of the note may make demand or commence suit. In your case, if the borrower is not offering some other or new solution, it sounds like it is time to commence suit.

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