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I am currently in a situation that is ultimately my fault, but I am begging for any advise.
I do not even know where to begin...
I used to be a personal banker and became financially involved with one of my clients. I had maintained his finances for a few years and we developed a great relationship along with great trust in one another. He had previously faced some difficult times in his life (ie. loss of a young child) and my heart really went out to him. Long story short, over time we decided to start a business together. I was a silent partner and controlled all the finances, bills, bookeeping, ect.
His credit was not spectacular (as mine was) due to medical expenses and lawsuits insued with the death of his son. Without using my best judgement, I offered to take out loans to establish capital and operating expenses. These loans totaled $80,000. He was to be responsible for these payments and assured me there would be no problem in meeting the payments. Everything was going great and we were generating profit when a strange twist of fate occured.
First, my friend was diagnosed with cancer. Secondly, my job transfered me. Now being so far apart it became nearly impossible for me handle the financial end of the business. I finally turned all responsibility over to my partner, without hesitation.
About four months later I began receiving calls from creditors about the loans being unpaid. I was furious, but my friend always had a legitimate reason it seemed (ie. a client's check bounced causing the payment to be returned). As the calls became more frequent I realized I had a problem. Now I have five loans in default, a maxed and canceled credit card (in the business name), and a charged off checking account. My credit is ruined and I am a banker for God's sake!
Contact with my friend soon became less and less and now I can not reach him at all. He will not answer my calls. My husband actually waited for him outside his home just to try and get answers. He at that time said he was in the process of selling some stock to pay the debt in full. That is the last we have heard from him. At the origination of the business my partner stated hed had taken out a life insurance policy to cover the debt should something happen to him (this was prior to his cancer diagnosis). I have since learned that the policy is non existent. I have talked to my DA and a private lawyer and they said I could file a judgement against him but that is really not effective and is basically just a piece of paper.
I am at my wits end and do not know what to do. Have I been conned? i Would take a second lien on my home, but I can not make the additional payment. If I could I would just pay the debt. I hate the thought of him just getting away with this and it is almost impossible for me to pay off his debt. He put $11,000 on the credit card which was just him spending money on personal expenses.
I realize that my name is on these loans and I am ultimately responsible, but we had an agreement. Doesn't a man's word mean anything anymore? I know I was irresponsible and thought with my heart instead of my head, but I was just trying to do something good and help someone. Why am I being punished? Do I have a leg to stand on? Is there anything I can do? Does anyone out there have any advise for me?
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