Legal Question in Business Law in Colorado

You need to hire a business attorney to draft agreements to protect you from this debt. There are a couple of strategies. First, any buyout agreement should indemnify you from any debt collection related to this debt. Second, that indemnification should be done through a secured agreement on assets in the business worth the amount of the debt. Third, the agreements on the buyout should release you, at least within the context of the business and your partners, for this debt.

Ultimately, the best way is for the business to have the bank agree to remove your guarantee in some manner. If that is not possible at all and you still want a buyout, then you must have many agreements to protect you. Please, hire a business attorney. If you try to do this yourself you will make costly mistakes. We are talking tens of thousands of dollars. Spending a fraction of that for legal advice to protect you is a great investment.