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Business Debt/SBA defaulted loan where business is dissolved

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Expert: - 1/5/2009


Question
We renogiated with the bank after our business went under to try to pay off our SBA loan.  The term of the agreement is over and we cannot afford to continue to pay them.  We still owe $16,000 secured by our house, where they are the third lien holder and there is no equity in it.  It has been three years since the business was sold.  We also personally filed bankruptcy 3 years ago.  Unfortunately, we reconfirmed this debt to be paid off in three years, making payments of $150.00 per month.  Do you have any suggestions on how to minimize or eliminate this debt?  The bank wants the total sum of $16,000.00 or they say that they will try to forclose on our house.

Answer
Kellie:
Thank you for your question. The SBA loan is secured by equity (albeit worthless on their part.) You appear to have shown good faith in payment as agreed, and I am aware of many in similar situations who have come to reasonable settlements on remaining balances by simply offering up a lump sum (usually less than what is owed). If you have some funds to offer, you might want to contact the lender and do so, even if it only buys you time to re-engage a going forward payment plan acceptable to both parties. Foreclosing on you won't likely yield any money from the sale of the property as they hold a subordinate position on the lien. My, advice is to be as aggressive as you can in re-negotiating suitable terms, as this seems your best bet given your described circumstance. If you can not, or they issue notice of default, lawsuit, etc. then you must hire an attorney to do your bidding for you. I wish you the best and hope you find a meaningful resolution to your plight.

Respectfully,

Christine Janklow

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Christine Janklow

Expertise

As President of SettleSource,Inc. a business debt settlement firm, I invite you to inquire about all aspects of business debt solutions to best determine which may be most appropriate. If you have questions such as: What is debt settlement and how process provide debt relief to my business? What options are available to deal with my business debts? Is it possible for a business owner to negotiate their own settlements? Why is debt settlement preferable to filing a bankruptcy or debt consolidation? Why are creditors willing to provide settlements to a business? How will settling debts affect credit scores? or How to rebuild a business after debt is eliminated. Please ask it now! For more information regarding how debt settlement can help your business, please visit www.SettleSource.com and place your inquiry. Mention All Experts to have a confidential no cost consultation with Christine. If this is your business situation time may play a very important factor in getting matters resolved proactively before they have negative affects on the business.

Experience

My expertise is specific to providing business solutions that will have profound positive impacts on the financial health of businesses. I have 25 years experience as an entrepreneur and have developed national sales programs; strategic alliances; product development; marketing programs; business and turnaround plans and debt settlement programs all providing methods to improve the financial outlook for large and small businesses. In the area of commercial debt settlement I have over 10 years experience working with large and medium corporations and closely held businesses to enable successful debt reduction and turnaround. I am a professional debt arbitrator and have negotiated with major banking institutions as well as vendors, suppliers and other trade creditors.

Organizations
Provisors;Turnaround Management Association; Los Angeles area

Publications
Accounting Today; Web CPA; National Restauarant Association;Los Angeles Daily News; Today Magazine Monthly series of business articles entitled "Brand News."

Education/Credentials
Bachelor of Business Administration; Associate of Arts Merchandising

Past/Present Clients
American Airlines, American Express, Safeway Inc., New York Life, consumer products manufacturers; retailers, food service industry and other small businesses and service providers.

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