Sold Collateral Is this Fraud?

[dockguy17]

What is the name of your state FL
I sold a business with assets about two years ago and held a $100,000.00 note that was collaterized by the business and personally guaranteed by the purchasers. (Who were partners) The individuals had made interest only payments up till about three months ago per our agreement (usually late) but in full with in a respectable time period none the less. I had heard that the partners spilt about a year ago and dint think anything of it. Since I hadn’t been getting my interest checks I contacted my attorney and he has informed me that the remaining individual has sold the business and has not paid me the balance due. My research has since informed me that this guy has two foreclosures in process, a $65K plus tax lien and countless other debt that he has defaulted on in the recent six months. The previous partner is still on the hook but wants to settle for .50 on the dollar. So I am looking for some advice other than from my currant attorney. I am not interested in spending 15k in legal fees without the being able to recover any money.

1) Is this any sort of criminal act or fraud?

2) Even if I get a judgment against this guy (which I am confidant I would) would it just get discharged in what I am assuming will be an eventual bankruptcy?

Any opinions would be great