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Michael
Michael, Attorney
Category: Business Law
Satisfied Customers: 58
Experience:  Experienced Business Lawyer
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I have a bsuiness question re: a loan with BofA. I have a

Resolved Question:

I have a bsuiness question re: a loan with BofA. I have a business that is failing oand one doing 'ok'.
I have a $40k laon wihtthe failing business..no income..it is only secured tomy perosnal name.
I have offered a 1 time buy out at $8k (20%) they declined me saying my business was viable....I told tehm otherwise. What are my options if they decline me? BK?

at the same time I am shorting my home in FL and trying to restrucutre without filing BK.

Finally- need help wiht a personal lot in South Carolina -owe $75,000 worth $20,000 bought it for $95k. BB&T says it is easire to file BK and get out than short sell ...can you help with this issue too or direct me to somenoe who can help?
Submitted: 5 years ago.
Category: Business Law
Expert:  Michael replied 5 years ago.

Michael J. Duffy, Esq. :

Hi there,
My name is XXXXX XXXXX I'm a business law attorney that will be answering your question.

Michael J. Duffy, Esq. :

It sounds like you have a number of outstanding debts, without the assets or potential income to cover those debts.

Michael J. Duffy, Esq. :

As you are personal guarantor on the business loan, let's disregard the business entity for now, as you are the one responsible for it (the bank would look to your personal income in relation to repaying it even if the business wasn't viable).

Michael J. Duffy, Esq. :

If you have the $40k debt for the business loan, and a $55k deficiency on a property ($75 balance with $25k equity), and you lack the assets or income to repay these debts, bankruptcy would certainly be a possible recourse.

Michael J. Duffy, Esq. :

If you are doing a short sale of your home, you would probably want to talk to a bankruptcy attorney immediately. There might be options in bankruptcy that would allow you to retain your home, or at least protect some assets that would otherwise be lost. The short sale would eliminate those options, so ti's better to act sooner rather than later.

Customer:

not interested in retaining home for some personal matters (and some debt elimination matters).

Customer:

do i have any optinos to 'negoatiate ' with BofA on this bsuiness debt?

Customer:

also, need to look at hte property in SC as an issue....

Michael J. Duffy, Esq. :

You certainly can try to negotiate with BoA, but their willingness to work with you would depend on a number of factors. Given that it's business financing (rather than a home mortgage, for example), your direct recourses are even more limited. Was the BoA debt secured? They probably wouldn't be willing to take much below the principal balance willingly. They would probably only do so if forced by a bankruptcy court.

Michael J. Duffy, Esq. :

BoA has you personally on the hook for that debt, so your personal finances are all they'd really look at if the business wasn't very liquid.

Michael J. Duffy, Esq. :

Again, with the SC property, as it's not a primary residence with a mortgage, your options are more limited. If you are unable to make payments, they might not accept a short sale, particularly at that level of deficiency.

Michael J. Duffy, Esq. :

To determine if bankruptcy is an option, or what kind you might be eligible for, there are some online resources.

Michael J. Duffy, Esq. :

I hope this answer has been helpful. I'd be happy to further clarify my response and follow up with any other questions. If you're satisfied with my answer, remember to hit the "accept" button, and positive feedback is always appreciated! -Michael

Customer:

so - i am satisfied withyour responses BUT it soundslike I am screwed for lack of a better term. right?

Customer:

The taxpayers bailed these #$%^&*( out but I will HAVE to pay all of my obligations with no chance of help?

Michael and 3 other Business Law Specialists are ready to help you