Answering When Your Guaranty Is Called

You signed a guaranty. That guaranty enabled the partnership you had sponsored to obtain a loan. That loan enabled the partnership to buy and develop some much needed housing for your community, which in turn would earn a nice return for your investors and your family.

Now, the loan is due but can't be refinanced, the project can't be sold for enough to pay what's owed, and as a result you aren't sleeping well at night. To add insult to injury, your advisors are telling you that you could well owe the tax man as well as the lender, and that, despite what your family thinks, you would have been in better shape if you had been reckless and signed even more guaranties.

What gives?