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I am a 50% partner in a business for the last 3 years. we ...

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I am a 50% partner in a business for the last 3 years. we took out a loan to start the business, and since we started the business we never took any profit home. My question is that I want to get out and my partner wants to stay. What is my obligation, if any to the loan and cant I just walk away from the business? The business is worth about $100,000 and our whats left on our loan is $73000. Please help me.
Submitted: 6 years ago.
Category: Business Law
Expert:  FiveStarLaw replied 6 years ago.
Hello,
Did you sign personally for the loan? Is the laon secured or unsecured?
Customer: replied 6 years ago.
The loan is under the business name. My partner and I are personal guaranteer’s. I do not know if it is secured or unsecured.
Expert:  FiveStarLaw replied 6 years ago.
Hello,

Generally speaking, a personal guarantor of a loan can be held liable for the entire outstanding balance if the original debtor does not pay. In your case, from the facts given, both you and your partner personally guaranteed the loan. Usually lenders require guarantors to sign "jointly and severally". Joint and several liability means that the lender can collect the entire amount of the loan from either guarantor. Assuming you and your partner guaranteed the loan with joint and several liability, the lender can collect 100% of the loan balance from either of you in the event of a default on the loan by the business. If the lender were to collect 100% from you, your remedy would be to sue your partner for his share of the monies.

One remedy to this situation would be to request that the lender release you from the guarantee.

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FiveStarLaw, Attorney
Category: Business Law
Satisfied Customers: 36646
Experience: 25 years of experience helping people like you.
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