I started a business (LLC) with a partner about 3 years ago. We took out a business Line of Credit. Because the business didn't have credit of its own, we both cosigned. 1.5 years ago we decide to part ways. It wasn't exactly a "friendly" split. For the blessing of getting out, I was willing to pay half the debt, leave him with 100% of the assets.
He never handled loan, maxed out the LOC, filed for personal Chapter 7 bankruptcy. Now I'm getting calls from the bank asking that I pay it since I'm still a guarantor. The company is still in business, though not really making any money.
Understanding that any questions asked or advice sought can get sticky re: legal options, I'll try to limit my questions.
1) What does it mean that the cosigned loan does not show up on my credit report? Can I read anything into that re: responsibility?
2) I've seen the chapter 7 filing and this loan was not listed as a debt to be relieved. As such, is he or the company still responsible for the loan? (not that he's much worried about defaulting on it or his credit at this point)
I'll likely end up paying it off to save my credit, as the total loan amount is only 10k... not really worth getting a lawyer over. Thoughts are appreciated!