Thank you for your question. I am happy to assist you.
Typically a lender requires the borrowers to sign "jointly and severally". Joint and several liability means that the lender can collect the entire amount of the loan from either borrower.
Assuming the note was signed with joint and several liability, the lender can collect 100% of the monies owed from either
borrower in the event of a default. If the lender were to collect 100% from you, your remedy would be to sue the other borrower for his share of the monies. However, if the other borrower has filed bankruptcy, the debt to yu would likely be discharged and thus uncollectible.
The terms of the note may require that the lender first execute on the collateral prior to taking additional collection action. However, this is not typical for a business loan collateralized by a home. You will want to consider reviewing this issue with local counsel.
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THIS IS FOR INFORMATION ONLY. NO ATTORNEY-CLIENT RELATIONSHIP EXISTS. PLEASE CONSULT A LAWYER IN YOUR STATE FOR LEGAL ADVICE
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