How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Barrister Your Own Question
Barrister
Barrister, Lawyer
Category: Real Estate Law
Satisfied Customers: 34846
Experience:  16 years real estate, Realtor. Landlord 26 years
19958803
Type Your Real Estate Law Question Here...
Barrister is online now
A new question is answered every 9 seconds

We has a S Corp commercial term loan was 300,00 and paid

Customer Question

We has a S Corp commercial term loan was 300,00 and paid 200,000.
I am in 94,000 default for last 2 years.
The business is closed and no income. Can bank (creditor) able to lien my house?
The equity on house about 200,000
Please advice!
Submitted: 6 months ago.
Category: Real Estate Law
Expert:  Barrister replied 6 months ago.

Hello and welcome! My name is ***** ***** I am a licensed attorney who will try my very best to help with your situation or get you to someone who can. There may be a slight delay in my responses as I research statutes or ordinances and type out an answer or reply, but rest assured, I am working on your question.

.

Who signed for the loan...the S Corp officers or you personally?

.

If personally, did you guarantee the debt in addition to the S Corp agreeing to be liable?

.

.

thanks

Barrister

Customer: replied 6 months ago.
I am not sure how I did. Since Bank collection agency mail letter saying that if I do not pay within a 7days, will lawsuit. And 3 months ago my bank noticed me they got my 3 month balance history by judgement
How can I save or reduce my damage?
Customer: replied 6 months ago.
S Corp officer is me and my husband
Customer: replied 6 months ago.
But they did not tell me we are personally responsible for the loan and did not tell me. On the loan, commercial term loan
Expert:  Barrister replied 6 months ago.

Ok, to be honest with you, there is no way to know your exposure unless you can check the loan documents to see if you agreed to be personally liable or if just the S Corp is liable. If it is just the S Corp, and it has gone out of business, then the lender is out of luck.

.

But if you personally guaranteed the loan, which it typical, then they can still come after you for the debt.

.

So if you look over the paperwork and see anything signed like "Bob Smith, President" on every signature page, then you didn't sign agreeing to be personally liable and only the company is liable.

.

.

thanks

Barrister