SBA Disaster Loan Default

[katrinainnola]

What is the name of your state (only U.S. law)? Currently TN, but soon to be LA

What is the name of your state? Currently TN, but soon to be LA.

When I defaulted on my SBA Disaster Loan, it was turned over to the Department of Treasury which in turn, turned it over to a debt collection agency. The collection agency informed me that my entire loan amount with interest is due in full and that they only have 3 years to collect this debt. Although I have been making monthly payments for the past 9 months, I know that it is impossible for me to pay $50,000 in 3 years. I admit that I made a mistake by letting my loan default in the first place and am not trying to get out of paying it back; however, I am unable to pay the full amount in that little bit of time. The collection agency informed me that if the debt is not collected within 3 years, they will turn it back over to the Dept of Treasury who will most likely add more interest and late fees before turning it over to another agency. I take full responsibility for my loan and just want to remedy my original mistake by paying it back, but I feel like this will go on forever. Is there any help/hope for me? The only suggestion that the collection agency had for me was to try to take out a bank loan (which I did, but was denied) for the amount due, pay them and then make monthly payments to the bank. Other than that, they say I can make monthly payments that will exceed over $1,000 a month, which I cannot afford. I am at a loss of what to do. I do not own a home to mortgage nor have any collateral whatsoever. Thank you in advance for your advice.

 

[Antigone*]

What is the name of your state (only U.S. law)? Currently TN, but soon to be LA

What is the name of your state? Currently TN, but soon to be LA.

When I defaulted on my SBA Disaster Loan, it was turned over to the Department of Treasury which in turn, turned it over to a debt collection agency. The collection agency informed me that my entire loan amount with interest is due in full and that they only have 3 years to collect this debt. Although I have been making monthly payments for the past 9 months, I know that it is impossible for me to pay $50,000 in 3 years. I admit that I made a mistake by letting my loan default in the first place and am not trying to get out of paying it back; however, I am unable to pay the full amount in that little bit of time. The collection agency informed me that if the debt is not collected within 3 years, they will turn it back over to the Dept of Treasury who will most likely add more interest and late fees before turning it over to another agency. I take full responsibility for my loan and just want to remedy my original mistake by paying it back, but I feel like this will go on forever. Is there any help/hope for me? The only suggestion that the collection agency had for me was to try to take out a bank loan (which I did, but was denied) for the amount due, pay them and then make monthly payments to the bank. Other than that, they say I can make monthly payments that will exceed over $1,000 a month, which I cannot afford. I am at a loss of what to do. I do not own a home to mortgage nor have any collateral whatsoever. Thank you in advance for your advice.

You are in a bit of a pickle here, and don't have many options. Maybe a private loan through a friend or a family member, maybe another job???

 

[indian216]

Collections

I just learned that in collection agency usually make money pennies on the dollar from collecting your money. Once it hits collecitons you can negotiate. Dont let them scare you. If you have any savings or financial assitance perhaps you can negotiate with them.

 

[Antigone*]

I just learned that in collection agency usually make money pennies on the dollar from collecting your money. Once it hits collecitons you can negotiate. Dont let them scare you. If you have any savings or financial assitance perhaps you can negotiate with them.

This is an SBA loan ~ not much chance in that happening here. Uncle Sam will wait until the borrower is six-feet under to get all their money back ~ ALL THEIR MONEY.