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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 118658
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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2 partners walked away scott free. now bank and sba trying

Customer Question

2 partners walked away scott free. now bank and sba trying to take my personel buss.
Submitted: 6 years ago.
Category: Business Law
Expert:  Law Educator, Esq. replied 6 years ago.
Why did they walk away Scott free? Did you sign a personal guarantee for the loan?
Customer: replied 6 years ago.
2 partners filed bankruptcy but they also sighned a personal guarantee.the same as i bank is trying to take my other sole owner buss.
Expert:  Law Educator, Esq. replied 6 years ago.
Unfortunately, once they filed for bankruptcy they legally left you holding the bag and you would be liable for the loan if you have that personal guarantee and your only option here would be to file your own bankruptcy if you qualify, but that could jeopardize your other business if it is a sole proprietorship and not an incorporated entity. You may have to consider working out a deal with SBA for repayment or some forgiveness for a lump sum payment.

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Customer: replied 6 years ago.
the other buss is a llc with me and my wife and they also made here sign. it cost us 42000.00 to just get the sba loan. the sba loan sounds like alot of bull.we were rushed through the 142 page contract buy some 80yr old agent of sba. the bank that made the note was soldout the next month and now new owner doesn't do sba loans. so there is no terms they will accept from me but payment in full.ther has to be some help out there somwhere . do you have any ideals thankyou
Expert:  Law Educator, Esq. replied 6 years ago.
If the other business is an LLC, then it is separate from you as a personal entity and this means they have to pierce the corporate veil to get to the LLC unless you also signed giving them rights to the LLC. There is no way to know what you signed without reviewing it. At this point I am afraid you will need a local attorney to review all of the documents to determine what you agreed to in the documents you signed (the courts hold you liable for what you signed, even if they rushed you to sign them).