Can an endorser of a promissory note avoid payment if the maker of the note is declared bankrupt?
Alberta, Canada
The following excerpt is from Standard Trust Co. v. Bodrug, 1988 CanLII 3551 (AB QB):
In the case of Gagnon v. Jobin, [1944] Que. S.C 273, 26 C.B.R. 127, it was held by Savard D.J. that an endorser of a promissory note will not avoid payment because the maker of the note was declared bankrupt and afterwards was discharged of all his debts by the bankruptcy court. The discharge granted to a debtor is personal and does not affect the endorser of the promissory note.
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