Legal Question in Business Law in Pennsylvania

Yes, the lender can sue just one of the borrowers or both. Even if the lender sues both borrowers, the lender can collect the entire judgment from just one borrower. Of course, if the lender only sues one borrower, that borrower can add the second borrower to the lawsuit to share the responsibility. And if one borrower pays the entire judgment, that borrower can seek reimbursement from the second borrower.

Good Luck.

Sharmil McKee

Business Lawyer

Philadelphia, PA

http://blog.mckeeoffice.com

As a Franchise Attorney I agree with the other attorney answer. Basically, it's called joint and several liability. The lender can pursue either or both. Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation