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Loren
Loren, Attorney
Category: Legal
Satisfied Customers: 29072
Experience:  30 years experience representing clients.
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I owe Kabbage Inc about $6000 as well as several credit

Customer Question

I owe Kabbage Inc about $6000 as well as several credit cards. I have been paying a little bit each month for 5 months now to everyone and everyone said this is good until the other day. Now the small payments (less than min) are no longer good enough and everyone is coming after us. Kabbage just sent an email this is what they wrote:
Pursuant to our rights under our Agreement with you, we have filed UCC-1 with the appropriate state government agency and now have a perfected security interest in all of your company’s assets.
With a perfected security interest, we are now permitted to foreclose on and seize the assets of your business, unless you resolve your outstanding obligation to us. A foreclosure would involve the sale of your company’s assets until we recover the total amount due.
I took this loan out for purchasing inventory for my organic bulk foods business that has collapsed over the past 2 months to the point where I no longer even sell on ebay...what do I need to do to protect myself...they seized all my money several times from my paypal and even hit the bank account.
Robert
Submitted: 4 months ago.
Category: Legal
Expert:  Loren replied 4 months ago.

Good afternoon. I am Loren, a licensed attorney, and I look forward to assisting you.

Assuming you can not refinance the debt, it may be time to look into bankruptcy protection. Filing for bankruptcy would place an automatic stay on any collection activity by the creditor and allow you some breathing room to either restructure or otherwise get out from under the burden of the debt and make a fresh start.

You will need local counsel to guide you through the process. If you need assistance finding local counsel try Martindale Hubble (site rules prohibit us from referring specific attorneys) . Many attorneys themselves use this site to locate attorneys outside their jurisdiction or expertise:

http://www.martindale.com/Find-Lawyers-and-Law-Firms.aspx

It is a huge worldwide database searchable by location and specialty. The attorneys are all peer rated. So, they represent the top of the profession.