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David L
David L, Attorney
Category: Legal
Satisfied Customers: 3255
Experience:  Corporate, Real Estate, Estate Planning, Probate and General Litigation attorney 14+ years
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Due to a personal guarantee - secured by a mortgage on my residence

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Due to a personal guarantee - secured by a mortgage on my residence - that I gave on a bank loan for a business that I ran (as an LLC) and that failed several years ago, I was named personally in a lawsuit by the bank to recover their losses. Long story short, I filed for bankruptcy and upon discharge, I was dropped personally from the suit by the bank, who are now looking for a default judgment against the entity. So here's my question - if I am no longer liable personally due to the debt being discharged and having been removed as a party in the case can the bank still go after my house if they get a default judgment against the former company ? Also, am I correct in that I can't respond/defend the company pro se in this matter as MA requires that a lawyer be used to represent corporate entities ?
Submitted: 5 years ago.
Category: Legal
Expert:  David L replied 5 years ago.
Hello. You are correct on both assertions. Only the LLC entity (and any assets it owns) is liable now on the loan, and the LLC must be represented.
Customer: replied 5 years ago.
OK great news as I thought the personal guarantee secured by a mortgage might have carried through. As for the company, there are no assets and there are no operations so I guess they are just plain out of luck ! quick follow up, is the bank required to remove the lien/mortgage against my property due to the discharge or do I have to do "something" legal-wise to have it removed ? And just to be clear, as a non-lawyer and a non-party to the suit I couldn't answer the motion even if I wanted to correct ?
Expert:  David L replied 5 years ago.
If the BK discharged your obligation under the guarantee, your collateral should be released. You should ask the bank to record a release, which will clear title to your property. If the LLC has no assets, check with a local atty, but it may not be worth even defending. The bank would simply end up with a default judgment against an entity with no assets. Correct also that you cannot respond.
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Customer: replied 5 years ago.
David thanks !