California | Bankruptcy
Legal Question
Personal Guarantee
I am a partner in a home furnishings retail business (furniture, lighting, home accessories, etc.). The company has been in business for 15 years. I bought 1/3 of the business with another partner four years ago, and a year-and-a-half later bought the remaining shares of the company with that same partner (there are now 2 owners instead of 3). The exiting partner carried a personal on the shares which we both signed w/personal guarantees. Now that the economy has taken a dive and cash flow has dried up, we are about to default on this loan, and bankrupt the company (an S Corp.)
I don’t own any property—no real estate, no investments other than the company, and no retirement plans.
Is my best option filing bankruptcy? I’m current with my other obligations, but in no way could I come up with the money to pay off this note. If I don’t file, can he come after future income? How long can he pursue this debt?
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