Are there Personal Guaranty Liability Limits ?

[Framed]

Maryland_
Spouse receives judgment from former company 4 years after leaving. How can we undo personal guarantee to creditors of former partner?

For the last 15 months, my husband has received 2 notices of judgment from creditors of his former business partner who he left in 2004. His former partner is related to him, and he has been reluctant to pursue him legally for this reason.

This partner did not remove my husbands name on all obligations after he left, even though he had sold back his partnership shares and all interest to the company. Moreover, he continued to do business using my husband’s name on company records.

Several years later, the partner still did not remove his name from all previously held notes. When he started to default on mounting debts that he had accumulated, the creditors came after both he and my husband, who was no longer a partner in the business, having left 5 years earlier.

The resulting destruction has cascaded down to us; we have had our credit ruined after receiving2 judgments totaling around 400,000. We are still getting calls from the creditors for the partner daily., our contact info is still used.

How do we escape from this nightmare of ruination caused by the dishonest partner? Is there a way to let the court know about this? Do we have any rights or protection under the law?

Sorry for this mess. I wish I had a simpler solution, but having read everything you posted, I think that only litigation will likely bring a resolution to this nightmare. If he has not already done so, your former husband should send documentation to the creditors and collectors showing his disavowance of being personally liable for these debts. However, they will most likely continue collection actions, which leaves the option of obtaining relief (most likely a declaratory judgment or order) from the Court. There is so much at stake here -- especially given the amounts of time and monies -- that your only real option is to speak with a lawyer pronto. I would suggest going to the WLD main page and getting a referral. They have business attorneys all over, and that is really the only place to start. Hope it all works out. AJJ