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Business Debt/chase line of credit default / SBA


i have the same exact problem as stated in another question.  i am working on trying to resolve this.  i was encouraged to get a business line of credit with chase bank when i opened up a business account in 2008.  i agreed(thinking i would never need it)..economy tanked and i used it up hoping to stay afloat.  i hung in there until 2009 paying into it etc...then i noticed no matter how much i paid into it there was never anything available.  went to bank and they told me they have discontinued the line of credit and now i have to pay the full amount immediately. they would not work out a monthly payment with me. they closed my bank account and sent it to collection. phone calls quit coming in a few years ago.  now..almost 4 years later i get a letter from department of treasury that a SBA in another state has confiscated a desperately needed tax return.  how is it possible that a place i have never heard of now 4 years later can confiscate my tax return without me even knowing who they are or for which old debt?


Unfortunately a referral to the US Treasury is common when it comes to SBA debt.  If Chase deems your account to be uncollectible, the file is passed to the SBA or Treasury, who attempt to collect the debt themselves, as they have likely reimbursed Chase for much of the loan.

The US Treasury has a collection tool called the Treasury Offset Program.  It allows them to garnish wages, social security payments, and federal tax refunds from delinquent borrowers.

If you have the ability to raise some cash, it may be possible to settle the debt for less than the full balance.

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Jason Milleisen


Jason Milleisen is the founder of Distressed Loan Advisors, and offers expert advice about dealing with SBA Loan Default. I have written numerous articles about SBA loan issues, and you can read them all at My services include assistance with debt settlement (aka Offer In Compromise), loan modifications, and lien releases. If it has to do with an SBA loan, I can likely be of service. Before I started my own debt settlement firm, I was an SBA workout officer at a large SBA lender, and handled and $85,000,000 delinquent loan portfolio. I negotiated directly with the SBA, so when it comes to settling SBA debt, I can say with confidence that there are no workout consultants out there who have as much first hand knowledge as I do. When it comes to SBA loan default, there is very little that I have not seen, so you can feel confident that my advice is based on past experience.


Jason, the founder of DLA, has experience with all types of loans and businesses, from $5,000 unsecured lines of credit all the way up to $1 Billion large corporate syndications. He has 10+ years of commercial loan experience, and was trained at the 2nd largest financial institution in the world. Jason also spent 2+ years as an SBA workout officer, where he reviewed and negotiated SBA settlement offer with client.

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