Debt from a semi(trucking business)

[consieb]

undefinedWhat is the name of your state? KS
My husband has an LLC and owns a semi(tractor) in his name, not the LLCs. The semi is not making any money. It cannot even make the loan payments. Should we voluntarily surrender it to the loan company or let them repossess it? Is he liable for the debt after the semi is auctioned? How can we protect ourselves from the debt? Can his wages or tax refunds be garnished?

[Debt Guy]

Q. Should we voluntarily surrender it to the loan company or let them repossess it?

A. In my opinion, it would be better to sell it and use the proceeds to pay the loan company. The loan company will action it for a depressed value. You will still owe the difference between the loan amount and the auction price (plus costs, etc.)

Q. Is he liable for the debt after the semi is auctioned?

A. If he guaranteed the note or signed the note in his personal capacity, yes. If the loan is to the LLC and he did not guarantee the note, no.

Q. How can we protect ourselves from the debt?

A. Stop signing loan notes. I know that sounds like a smart-a$$ - but the only way to protect yourself from the people you borrow money from is don't borrow. I guess he could file bankruptcy.

Q. Can his wages or tax refunds be garnished?

A. Wages can be garnished in KS but only after being sued and a judgment obtained by the creditor. A general creditor cannot garnish a tax refund. However, they can wipe out any bank accounts and attach your home.

[consieb]

Thanks for the info.