Legal Question in Personal Injury in California

Assuming there is no security (collateral) for the promissory note then you can probably discharge the debt in Chapter 7 bankruptcy (assuming you otherwise qualify for Chapter 7). You don't say whether or not you are operating a business now and it may be a problem for you to continue operating a business in Chapter 7, particularly if you have employees or is a high liability type of business. The trustee may shut you down unless it is just a self-employment situation. You can operate a business in Chapter 13 so that might be an option. If the promissory note is secured with business assets then you will not be able to avoid paying at least the value of the assets that secure the promissory note. You should really have a consultation with an experienced bankruptcy attorney in your area. This is not the type of case where doing it without a lawyer is even remotely an option. It is very common for business partners who are not going to be paid to allege fraud and that could complicate your bankruptcy case so there are risks and issues that need to be reviewed with a lawyer.

You do need to speak with an attorney in bankruptcy practice.