Hello, I'll try to give you the best advice I can.  Keep in mind I can't see your pics, I'm on satellite connection right now and sometimes I don't get all the pics.  I work for the government and this computer has some weird filters.  But that aside, yes you will have to work with the CA on this one and a PFD will be the way to go.  So, I take it this wasn't a LLC?  That would limit the personal liability on this.  I would contac the CA and see what kind of agreement can be worked out.  If you could post the info in text form I could look at it, or I'll be back in civilization on Friday.

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