• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

SBA had my personal guarantee on the loan

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

jennicole

Junior Member
I had a corporation that went bankrupt more than a year ago. We had a small business loan which was not included in our bankruptcy because it had been taken out within 6 months of our filing. We filed because of a bank action that prevented us from operating. At the time we had 23 employees working for us and we could not meet payroll. The SBA had my personal guarantee on the loan. With the bankruptcy I lost everything and have since had to move in with family. I suffered illness after illness from open heart surgery to losing my ability to walk. I am now on disability with a very small income. I received a letter from a collection company stating they represented the SBA. They want to know if the company is closed and if I filed bankruptcy. Should I just send off the information requested and wait to see what they may want next? They really cannot get blood from this turnip.What is the name of your state (only U.S. law)?
 


tranquility

Senior Member
While it seems you would be one "protected" by lack of resources, I suspect they will perfect them and their opinion of what you can live on is different from there's.

Yet, to answer your question, it seems you may be poor enough to not worry too much about a judgment.
 

dontodrin

Junior Member
Jennicole, you are correct, however they will chase you on your personal guaranty once they figure it all out. You must file an offer in compromise to reduce the amount owed to something you can afford to pay....This will work.
 

HomeGuru

Senior Member
I had a corporation that went bankrupt more than a year ago. We had a small business loan which was not included in our bankruptcy because it had been taken out within 6 months of our filing. We filed because of a bank action that prevented us from operating. At the time we had 23 employees working for us and we could not meet payroll. The SBA had my personal guarantee on the loan. With the bankruptcy I lost everything and have since had to move in with family. I suffered illness after illness from open heart surgery to losing my ability to walk. I am now on disability with a very small income. I received a letter from a collection company stating they represented the SBA. They want to know if the company is closed and if I filed bankruptcy. Should I just send off the information requested and wait to see what they may want next? They really cannot get blood from this turnip.What is the name of your state (only U.S. law)?


**A: the corporation BK did nothing to extinguish your personal guarantee on the bank loan. You are still on the hook but cooperate with them. Remember, you did not personally file BK, only the corporation did.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top