Hi, I took 60k 2 years ago and the balance is now 40k. It is a business loan with personal guarantee. Since the business is not doing good, I am not able to pay the minimum monthly. Chase threatened to sue me. What can they do? I also have a house I am trying to sell because I cannot afford it any more as I am not making any money from my business. What can I do at this moment? If I file for Bk for my Business, will it eliminate the chase loan? Can they put a lean on my house as well before it gets sold? Thank you for all you help.
I recommend you speak to a BK attorney in your area. You may be able to file for Chapter 13 and protect your assests. Only he/she can spell out your options after reviewing all the facts. Obviously, the loan should've been taken out in the companies name. There may be ways around this.
The loan was taken out on company name but they had me sign as a personal grantor. In this case what can I do? Any recommendation for a good atty? Thanks.
No. You need to find one in your area (State, County, City) who specializes in BK. Shop around. The fact that the person is an attorney doesn't mean they're a SME (subject matter expert) in BK.
Chase can sue you, since you signed as a personal guarantor for the loan. However, put your "businessman hat" on, and approach it as such. First, pull out the loan agreement, and read EVERY word of it. Review what the Ts&Cs state they can do, and review what your "guarantee" really means. Contact an attorney who specializes in BK, both business and personal. Check with your state's Bar Association Referral, they will give you a list of attorneys who specialize in these fields, in your area. Filing BK for the business will not eliminate the debt, as you signed "personally" for it (hence, why the require a personal guarantee). If you file a personal BK, this bedt will be included in a payment plan. It shouldn't matter if they put a lien on your house, if you're trying to sell anyway. The issue is whether there is enough "proceeds" after the sale to cover the mortgages you have on your house, and the 40K lien. This will impact whether a clear title can be obtained for the property. Again, you are in a situation that requires an attorney, reading your loan agreement(s), and selecting a good attorney are your two top priorities right now. Be aware that all BK lawyers usually ask for the money up front, so try to build a fund for this. Or they will ask for "pay as you go" for the billable hours.
