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I am Loren, a licensed attorney for over 30 yrs. Thank you for your patience as I review the question. I will post my response shortly.
Unfortunately, unless the borrower was an LLC or corporation, an entity separate from you personally, you have no protection form personal liability. A sole proprietorship is the same as if you personally borrowed the money.
I am sorry. I wish I could tell you otherwise.
You may want to look into bankruptcy protection.
I realize this is probably not the answer you were hoping to receive. Also, please remember that this is not a moral judgement on my part. As a professional, however, I am sometimes placed in the position of having to deliver news which is not favorable to a customer's legal position, but accurately reflects their position under the law. I hate it, but it happens and I only ask that you not penalize me with a bad or poor rating for having to deliver less than favorable news.
If you have a trust with a spendthrift provision then those assets could be protected. If it is just a simple revocable trust then it is unlikely it will provide any protection.
I attempted to accept your phone call request and received the following message:
"Payment for this service failed, please do not fulfill yet. We will attempt to reach this customer to fix the situation."
If you can resolve the problem (it is usually just a matter of confirming with your bank or credit card that the charge is authorized) I look forward to speaking with you.
Otherwise, I am happy to continue online with you.
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