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Roger, Attorney
Category: Bankruptcy Law
Satisfied Customers: 31672
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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I live in the state of Missouri. I have an SBA loan from US

Resolved Question:

I live in the state of Missouri. I have an SBA loan from US Bank which I took out about 1 year ago to offset operating expenses for LifeLong Fitness,LLC. I have allowed it to become 118 days late due to extreme fluctuations in cash flow. I was told by someone at a branch that I could call collections and make a payment of about 956 and they could restart my monthly $956 payments.   When trying to make payment to come up to speed, the company insisted that I must pay 4800 immediately or risk immediate "repo" of everything in my suite. Further, they stated that it is too late to make arrangements to make up for the amount in arrears. They do not hold title to anything in my suite, but claim that all assets can be taken to satisfy the loan. My sister actually bought the equipment 9 years ago which I am using in my suite. They said, " we don't care who owns it, we have rights to it. This is all quite disturbing to me. Your advice is appreciated.
Submitted: 8 years ago.
Category: Bankruptcy Law
Expert:  Roger replied 8 years ago.
What they're telling you is partially true. If your loan is in default, and the lender sues you for the debt and obtains a judgment against you, it can then attach property that you own, garnish wages or bank accounts, etc. to satisfy the judgment amount.

Customer: replied 8 years ago.
So they must first sue and obtain a judgement? If so, it sounds like this might take some time. They only assigned it to repossessions on Monday. Am I wrong? I can probably make up the arrears amount in 60 days or so. Can they just show up in the next week to try and take things?
Expert:  Roger replied 8 years ago.
<p>You're right. It would take some time for them to obtain the right to anything it doesn't have a lien on via the loan. </p><p> </p><p>They may show up and try to take your property, but if you object, they must leave. </p>
Customer: replied 8 years ago.
To have a lien on the assets via the loan, do the assets have to be specifically listed on the loan documents? With my sister having bought the equipment, do they have the right to take it?
Expert:  Roger replied 8 years ago.
The loan would have to list the property in order for the lender to have a lien on it. Also, if the property at issue is not yours, the creditor cannot take it.
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