Hello and thank you for allowing me the opportunity to assist you.
Question: “Question: What happens to the building, ,which the LLC owns, and the mortgage Josh is solely responsible for? What do I need to do to enforce Josh's guarantee to me when the bank attempts to collect from me on the LOC after Josh's bankruptcy filing?”
Answer: Assuming the mortgage is included in Josh’s bankruptcy (it doesn’t have to be), then the lender will likely foreclose on the property. It doesn’t matter that the LLC owns the property since the lender’s security interest is still valid. Unfortunately, there is nothing you can do to collect from Josh if he includes your debt in his bankruptcy. It would be illegal to attempt to collect once the bankruptcy is filed (even a lawsuit is precluded). And if your debt is included in the bankruptcy, then a lawsuit would be precluded after Josh is discharged since the bankruptcy discharge acts as a permanent injunction on collecting the debt. I wish I had better news.
Have I satisfactorily addressed your concerns? If not, then please feel free to ask for clarification.
Although my answer was unfavorable, please understand that my goal was to provide you with honest information. With that in mind, I hope that you found my answer useful. If so, then please remember to click the green accept button so that I will receive credit and compensation for my time. Positive feedback is always appreciated as well. Thank you and good luck!
DISCLAIMER: Please understand that the complexities of most legal problems cannot be adequately addressed in this setting, and that I am only licensed to practice law in the state of Maryland. Accordingly, you acknowledge (1) that we have not formed an attorney-client relationship, and (2) that my post is general information only and not specific legal advice.