January 11, 2016
According to SBA.gov, Small Business Administrative loans may be an option for individuals wishing to start or expand a business who are in need of financing help. While the loan itself is financed through your local participating bank or lending institution, the SBA guarantees the loan. In the event you should default on your SBA loan, the risk to the lender is minimized but you, the borrower, remain obligated on the debt.
If you should find yourself in a situation where you are in default to your SBA loan, there are a variety of strategic options Keller & Almassian, PLC can help you navigate. Because of the personal guarantee that is usually a mandatory requirement of receiving an SBA loan, defaulting on your loan means you are vulnerable to wage garnishment, bank account garnishment, foreclosure on property that has an existing lien in place, or having a lien on your real property put in place.
Early on in default, negotiation strategies may still a viable option for borrowers. Your lender may work with you to modify or defer your SBA loan however, this is a short-term solution. If you cannot afford to pay your SBA loan, you may be able to eliminate your personal liability by filing for bankruptcy.
Filing for Bankruptcy
Filing for bankruptcy may be an option to eliminate your personal obligation on an SBA loan. The attorneys at Keller & Almassian will give you the information to make the right decision for your specific circumstances. For more information on filing a bankruptcy visit our Bankruptcy(link) page or Contact(link) us today to set up an appointment with one of our Board Certified Bankruptcy Attorneys to learn more about your debt-relief options.