AboutChristine 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.
Organizations Turnaround Management Association; Los Angeles area
Publications 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 and service providers.
Question Hi,
I have a lot of background on this issue but I guess the bottom line question is... We (my husband and I) have an S-Corp. and are personally guaranteed on an SBA loan with our ex business partners. They have told us they can no longer afford the payment and neither can we. The equipment we bought is useless and turned out to be a total lemon. So the bank is not likely to want to take it and sell it because it is unsellable. What is going to happen if we stop making payments.
Thanks, Brittney
Answer Brittney:
Thank you for your inquiry. I regret that you have encountered this financial hardship. Because you have personally guaranteed an SBA Loan (Federally backed) you will have to find a way to repay the loan. If you don't pay it collections actions will very likely be sought and you may be sued, wages garnished or bank accounts levied. It is not my intention to frighten you just to give you an understanding that the type of debt you owe here is like a secured debt. That said, you can do any of several things to try to resolve this:
-You can call your issuing bank and ask if there are any "hardship" programs or if they will offer some forbearance (Short term payment relief)on the account.
-You can seek commercial credit counseling, to see if interest can be reduced and a lower payment amount structured.
-You can sell or liquidate assets to pay off the loan.
-Lastly, you may be able to have this forgiven through Bankruptcy protection (personally if the business is no longer solvent)Please seek the advice of an attorney.
I wish you the best with finding a resolution. Please take a moment to rate this answer if you found it helpful.
Respectfully,
Christine Janklow
