Startup failure / Notice for recovery of money

[PipTiamat]

Back in 2006-2007 I decided that I wanted to start a business with a former co-worker of mine named Mike. Mike had no credit nor any money, I did. He was a good public speaker and a fairly intelligent man so I thought he would be a good asset to our new company.

I decided to Invest $15,000 and we got a personal loan for $2,500 to open a restaurant. Upon receiving the $2,500 Mike was attempting to sell his house so that he could move into an apartment and have another $10,000 to invest, he would then repay the $2,500 which was agreed upon in the contract.

Prior to selling his home we had formed a LLC which I paid for to put the business under. the general agreement was that I would initially pay the upfront costs and then receive more ownership over the company.

Now here is the problem.

He had took off with the remainder of my $15,000, the $2,500 loan, and the money he had gotten from the auctioning of his house, roughly $10,000. (I had taken several months planning, speaking with city officials and trying to learn how to start a company.)

Over the last 3 years my credit has been destroyed and my finances are in shambles and I'm on the brink of bankruptcy. I'm roughly about $12,000 in debt because of this venture. I just want to at least get back to ground zero and have the $2,500 loan paid as was agreed in the written contract.

I'm attempting to get a BS degree in Business to eventually re-attempt a business while being much more prepared.

What are my options? Screwed for the next 7 years or perhaps something a little less painful?

[AFFA]

I wish to inform you that the money which has been taken by your former co worker belonged to your LLC. The money was to be used for business purpose of LLC and not personal purpose. Therefore taking money out of business for personal purpose is not correct and against the agreement for which money was taken or invested. You may first give a notice for recovery of money to your co worker and can inform him that a suit will be filed if he does not return money to business. Thereafter you may on behalf of your LLC file a lawsuit against your co-worker for recovery of money.

AFF

[PipTiamat]

I'll put together the notice of recovery and attempt to contact him. It's been a few years but I'll make the attempt prior to filing the suit.

Once things start rolling I'll come back to to forum to update you all on how it goes.

Is the Notice of recovery a formal notice or does it just have to be something written up by me?

Thanks for the advice I really appreciate it.