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Phillips Esq.
Phillips Esq., Attorney-at-Law
Category: Business Law
Satisfied Customers: 19016
Experience:  B.A.; M.B.A.; J.D.
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My partner and I are in a LLC. He has 2/3 and I have 1/3. We

Customer Question

My partner and I are in a LLC. He has 2/3 and I have 1/3. We borrowed money from the bank for property and they made our spouses sign with us on a secure note for the llc. We have been making payments for 7 years and now I am unable to make payments. He
is wealthy and the bank will not let us short sell. We have a chance to sell property for a loss, which I cannot afford or have the money to pay balance due bank. He is trying to get me and my wife to sign an unsecured note to pay him an amount which he thinks
is reasonable over a ten year period. I have offed to pay 1/2 in a 5 year period..He said unexceptible that he will sue me and my wife and her business. She has no stock or membership in the LLC, only she co signed on the loan from the Bank for the property.
Can he sue her or garnish wages or put any kind of holdings on her business. He will be paying off the bank. Currently we do not have a note with him. He has been loaning the business money to pay off the loan for the last several years.
Submitted: 2 years ago.
Category: Business Law
Expert:  Phillips Esq. replied 2 years ago.
Hello: This isCustomer I am a licensed Attorney and I will be assisting you today.
My partner and I are in a LLC. He has 2/3 and I have 1/3. We borrowed money from the bank for property and they made our spouses sign with us on a secure note for the llc. We have been making payments for 7 years and now I am unable to make payments. He
is wealthy and the bank will not let us short sell. We have a chance to sell property for a loss, which I cannot afford or have the money to pay balance due bank. He is trying to get me and my wife to sign an unsecured note to pay him an amount which he thinks
is reasonable over a ten year period. I have offed to pay 1/2 in a 5 year period..He said unexceptible that he will sue me and my wife and her business. She has no stock or membership in the LLC, only she co signed on the loan from the Bank for the property.
Can he sue her or garnish wages or put any kind of holdings on her business. He will be paying off the bank. Currently we do not have a note with him. He has been loaning the business money to pay off the loan for the last several years.

Response: Yes, he can sue her and garnish her wages IF he pays off the loan and tries to get your portion of payment and you cannot pay it back. He can then sue both of you, or her alone to get you to pay him back your share.