You are here:

Business Debt/SBA Loan settled, now in collections

Advertisement


Question
QUESTION: About a year ago I settled a SBA loan through the "Offer and Compromise" which released my personal guarantee, the LLC has been dissolved as well. I just received a letter from a collections agency trying to collect the loan on behalf of US Treasury! What can the collections agency do, can they sue me or garnish my wages for the guaranteed debt?
Thanks in advance...

ANSWER: All you have to do is send them the paperwork showing you settled the loan and the release of the personal guarantee.  Send it by priority mail or certified mail. If they contact you again after that send a cease & desist letter or hire an attorney since you are proving you do not owe the money.

---------- FOLLOW-UP ----------

QUESTION: I've done that already, but they are saying the debt is still owed by the business, and collections will continue.
The LLC is out of business for 2 years, but the LLC is awaiting an administrative dissolution. As a member of LLC am I liable for the debt, or can a suit be filed?

Answer
Since you have provided paperwork and sent a cease & desist which they are ignoring, (illegal) give your paperwork to an attorney, and have them send a letter. Also, let the collection agency know you have turned this over to an attorney, then by law they cannot contact you and can only deal with the attorney.

Business Debt

All Answers


Answers by Expert:


Ask Experts

Volunteer


Michelle Dunn

Expertise

As one of the Top 5 Women in Collections, one of the Top 50 Collection Professionals, and winner of the Business Excellence award, I can answer any questions about debt, debt collection, improving business credit, creating a credit policy, enforcing a credit policy and collecting on past due accounts. I can also answer questions in regards to starting a debt collection agency since I have been a bill collector for over 24 years, started and ran my own collection agency for 8 years, and maintain my 12 year old Credit & Collections Association for members of the credit & debt collection industry. I am also the author of the popular and award winning book "Starting a Collection Agency, how to make money collecting money" now on it's 3rd edition. This book has won a the Writers Digest self published award as well as the New York Book Festival Award. I am a repeat contributor to the Wall Street Journal, and have been featured on NPR, CNN, as well as many other national radio and television programs. I have also been featured in national publications such as the Wall Street Journal, Forbes, Smart Money, MSNBC and much more. I have 17 published books to my name and am an accomplished speaker and consultant. I currently write 9 columns for newspapers, magazines and online portals worldwide.

Experience

I have over 24 years experience in debt collection, I started and ran my own collection agency for 8 years and I am the founder & owner of my Credit & Collections Association that I founded in 1998. www.credit-and-collections.com

Organizations
My Credit & Collections Association, I was also a member of the American Collectors Association and Plymouth Chamber of Commerce for 11 years. I am a member of many writing groups as well as my local Women Inspiring Women chapter. I am a member of Know More Media as an expert for their blog on business credit.

Publications
Business NH Magazine, Smart Money Magazine, MSNBC, CNN, Forbes.com, The Wall Street Journal, Home Business Magazine, Entrepreneur Magazine and website, many books, newspapers and television programs as well.

Education/Credentials
I have written 17 books in my collecting money series and one for Entrepreneur Press called the Ultimate Credit and Collections Handbook. My newest book is being published by John Wiley & Sons in May titled, The Guide to Getting Paid, how to weed out bad paying customers, collect on past due balances and avoid bad debt. This book is also being sold to many colleges as a text book.

Awards and Honors
My book Starting a Collection Agency, how to make money collecting money won an award from Writers Digest and the 2007 New York Book Festival in the "How to" category. I have won 2 awards from Dun & Bradstreet and Governor Jean Shaheen. I was nominated as one of the Top 5 Women in Collections twice as well as having been selected as one of Collection Advisor's Top 50 Collection Professionals by my peers.

©2012 About.com, a part of The New York Times Company. All rights reserved.