in 2003, we took out an sba loan on a business that was a "slam dunk" as we were purchasing a service contract
to run a corporate
cafeteria in a building where 1200 ppl worked for a large company on it's way to fortune 500 status - it seemed; we did all their corporate catering, large events, subsidized charity programs etc;
successful for about 1.5 yrs and then they started layoffs and, when left with only 300 or so employees, left the bldg and relocated; bought us out but that all went to sba to pay them for the next year
The years up
sba loan balance of 465,000
(we have currently taken the few accounts that survived and turned them into a viable small business - blut it will never be able to afford the $7000 month of sba payments)
home worth about 500,000 with $330,000 mortgage left
credit line of 200,000 that we defaulted on
total attached to house = 465+330+200=995,000 on a 500,000.00 asset
we are filing chapter 7
and the debt will be wiped out - but if we keep the house the sba liens will stay attached so we have been advised to foreclose on the house and "walk away"
then, the liens are gone and sba gets nothing - right.
i would love to stay in my house (but not at the risk of never having equity
because of the second lien)