SBA Guaranteed Loan Personal Debt

by janice
(new port richey fl)

The IRS kept my ta return and informed me that I owed federal debt from an SBA loan with a personal guarantee for my husband and my company ( i owned 10%) which went bankrupt in 2002. I am 72 and disabled we never heard about this debt until the IRS kept the refund.

I called the Progressive Financial Co, and i was told they could take my Social Security if I don't pay $668,000. We were told by our lawyer that sba was writing off the loan since had put all assets into the co. and only had our social security and my husbands army retirement.

We have not had earned income since 2001. What can I do? My husband is 79 had prostate surgery, brain surgery and adrenal surgery and still has 20% disability from the army shold we get an attorney and what kind?

We live in new port richey fl in an adult community.

Comments for SBA Guaranteed Loan Personal Debt

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Mar 24, 2010
 SBA debt
by: Gerri

Thanks for submitting your debt collection question on our Q&A page.

Unfortunately, SBA loans carry additional collection remedies that aren't always available on consumer loans. As you have learned for example, your tax refund may be intercepted to pay back an unpaid SBA loan.

I recommend you talk to a bankruptcy attorney right away. According to bankruptcy attorney and expert Kevin Chern, SBA loans may be dischargeable in bankruptcy. However if there is collateral for the loan, than the lender would be entitled to foreclose on that collateral. It doesn't sound like that's the case in your situation. A free consultation with a bankruptcy attorney should help you understand your options for dealing with this debt.

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