I secured a line of credit against the house. My proposal to him was to pay off all of our personal & guaranteed business debt and remove myself from all credit cards and lines of credit. I told him that I will only pay the debts if I have a guarantee that I won't be liable for any new debt.
I think you should rethink this proposal. It sounds to me that there is not that much advantage to you and you are just enabling him to spend more money. I would not pay off all that debt and put it on your house.
Of course that is assuming that a bank will permit thaT.
Somehow this all just sounds like a bad idea to me. JMHO. If he wasn't in MLC it might be OK, but how is it that you are going to trust him right now?
Maybe you should get some legal advice about this before you do it.
