[MD_2005]

My wife and I were the only two members of an LLC in the state of GA. We were not married when she personally guaranteed the 5 year lease in September of 2005. Married with roughly 18 months remaining on our lease, we began to fall behind in payments. We requested a rent reduction (as others in our strip mall were receiving), but were denied. We were forced to pay reduced rent for the duration of the lease (up to September of 2010). Nearing the end of our lease term, the landlord began asking if we would like to renew the lease, alluding to a reduced monthly rent payment and several free months up front, and would allow us to go month-to-month until we made our ultimate decision. We stayed at month-to-month for the holiday season, hoping that we might make enough to pay larger amounts of our debt off, but unfortunately it didn't work and we fell further into debt. We closed at the end of January of 2011, delinquent roughly $25K in back rent.

Though we fully accept our responsibility to repay the debt, and have indeed been making good faith payments up until late 2011 when we could no longer do so without taking out a loan to repay the debt, SHE is now being sued for $29K. (The additional $4K is a questionable tax amount that all tenants are fighting.)

Obviously she (we) would like an out-of-court settlement, but at best we can probably get a loan for about $7K - $9K, and we doubt they'd accept that offer. So assuming they take her to court, what are the potential judgement repercussions?

She is unemployed, but can they garnish her bank account?

Though we were not married during lease inception, and I was not a guarantor, because we are NOW married and because I was a member of the LLC, can they garnish MY wages/bank account? (I am employed.)

Can they get to my 401K?

We both have multiple thousands in debt already and continue to pay off credit cards that we used for commercial purchases, but we're very concerned about the legality of them getting my money. It is our only means of paying our existing debts and regular living expenses.

Thoughts from experienced/qualified minds?

Thanks!