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Business Debt/SBA Loans exceed assets for Single Member LLC

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Expert: - 7/11/2010


Question
I am a single member of LLC (TRUCKING COMPANY). I owe about $45,000 in 3 SBA commercial loans. Each SBA loan had a personal guaranteed, for which I received discharge under my personal chapter 7 bankruptcy.  There is maybe $10,000 worth of assets in the business.  I would like to stay in business, but I do not feel that it is worth for me to continue to stay in business and still pay the $45,000 I owe. From what I understand, even if I turn in my equipment, banks will go after the remaining balance. Is this true? Do I have to close the business in order for banks to leave me? I would like to know what are my options in order to stay in business and at the same time to not carry $45,000 or $35,000 balance after the banks liquidate the assets.  Will transferring business to a family member (husband) help in any way? Thank you,
Viola

Answer
Viola:
Thank you for your question. A majority of banks who issue SBA are obligated to exercise taking action to collect on what is owed or liquidate assets. I don't know what state you are in but you are personally liable which means business or not, you have to pay. You might want to speak to your local SBA branch to see what options exist, or if they can recommend how you can apply for a loan modification or offer in compromise. Giving the business away to someone wont change the guarantor.

Respectfully,

Christine Janklow

Business Debt

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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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