If you were to lose a fraud complaint, then you would be liable for the debt and it would be nondischargeable, even in bankruptcy. So, you must
defend or settle the action, or file for bankruptcy, and then, if the plaintiff decides to sue you again in bankruptcy court
to prove the fraud, then you would have to defend there.
That is, a fraud claim that the creditor does not attempt to enforce in bankruptcy is automatically discharged.
Sometimes, by shifting the case to bankruptcy court, the plaintiff decides that it's not worth the money to start all over again. Most state court attorneys don't litigate in federal bankruptcy court, so this means that the plaintiff must hire different legal counsel, and spend considerably more money to obtain a final judgment on the fraud complaint.
This is, in my view, another reason to file for bankruptcy. You could spend some time pretending to try to settle, so that the plaintiff exxpends resources on attorneys, and then at the last instant file for bankruptcy.
Re the personal guarantee
, typically if there were such a document, then a copy of it would be attached to the plaintiff's complaint. If not, then you could informally request that the plaintiff produce a copy of the document to you, before formal discovery commences, in a good faith effort to settle the matter without resort to litigation.
If the plaintiff refuses, then maybe there is no such document -- and if there isn't, then you would have a legal action against the plaintiff for wrongful institution of civil proceedings.
The term "UCC" typically means a "UCC-1 financing statement." You can search for a UCC-1 at this link
I understand your frustration, and frankly, you have a very complex case, which requires a fair amount of analysis that I cannot perform here.
My original answer is still valid. Find a bankruptcy lawyer and put all your cards on the table so that you know where you stand.