How can I sue a person who has filed bankruptcy in another state? 2 Answers as of April 19, 2017

I consigned on a loan for a relative who was buying a restaurant in another state. I used my office building as collateral. Relative closed business after one year then filed bankruptcy. The loan company is now foreclosing on my building. The loan amount is $180,000.00. I can't file bankruptcy and run away. I own a foster care business. My contacts with Social Services and the Mental Health Department would preclude me from contracting. How can the relative escape and be free?

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Candiano Law Office | Charles J. Candiano
You could have demanded collateral or at least entered into an agreement that was NOT subject to discharge in Bankruptcy. Yes, you CAN do that. Moreover, this is obviously someone close to you. Bankruptcy may discharge the debt, legally, but your relative still has a moral obligation to make you whole. It is admirable that you helped your relative but given the statistics that 60% of new restaurants fail in the first year and 80% fail before their 5th year, it was unwise to risk your own security on a venture that was inherently risky and over which you had no control. The last thing the lender wants is your building. If they are foreclosing, they have been seeking to negotiate with you for months. You should seek legal advice from local counsel to assess your options, IMMEDIATELY.
Answer Applies to: Illinois
Replied: 4/19/2017
Mark G. Patricoski, P.C. | Mark G. Patricoski
He can and that was the deal you made. It was a bad deal, but you are stuck, and your relative is free and clear and you can't pursue him due to BK Protection. Why did you make this guarantee arrangement and you likely knew that when the restaurant failed, you were the only one left standing to pay bills.
Answer Applies to: Illinois
Replied: 4/19/2017
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