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  1. #1
    Join Date
    Sep 2010
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    4

    Default Any Way to Not Be Personally Liable for Debt

    My question involves business law in the state of: Kentucky and Pennsylvania
    In 2004, a friend started a business with 2 other friends. My friend was the only one with great credit and, of course, the LLC didn't have any credit, yet, so my friend personally guaranteed the loan to buy the property for the business. After a year, my friend wanted out and the 3 drafted an agreement that the remaining 2 would refinance and get my friend off the loan. Well, that was in 2006 and they never did. Now they've defaulted and are being sued and my friend is also suing them because they didn't follow the agreement. The property is likely going to be sold at a sheriff's auction and then the loan company is going to go after my friend (he believes) since he signed the loan.
    Can he do anything at this time to protect his personal assets (house of residence, rental properties, vehicles)? Are his wife's assets fair game for the mortgage company as well?
    The judge hasn't yet ruled whether the agreement to remove him from the company is valid.

  2. #2
    Join Date
    Sep 2005
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    Posts
    98,846

    Default Re: Any Way to Not Be Personally Liable for Debt

    He can hire a lawyer and try to fight the lawsuit and to recover any money he pays from his former partners. He can consult a bankruptcy lawyer. He can try to negotiate with the creditor.... There may be other possibilities.

  3. #3
    Join Date
    Sep 2010
    Posts
    4

    Default Re: Any Way to Not Be Personally Liable for Debt

    He's the one suing. As part of that, his lawyer is trying to negotiate with the creditor. Are his wife's assets fair game to the creditor?

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