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Roger, Attorney
Category: Bankruptcy Law
Satisfied Customers: 31787
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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I am 50% partner in a GA LLC that holds a commercial building.

Resolved Question:

I am 50% partner in a GA LLC that holds a commercial building. For 2.5 years we never missed a payment but in September, all 3 tenannts did not pay rent. A couple have not been paying for several months. Bad economy; and all 3 may not pay for a while. We missed Oct payment, and the bank has mailed us workout paperwork. The property does not show on our credit report although 2 out of the 3 partners are on the loan with a personal guarantee. My questions are this:
1- How will missing payments affect us (credit report wise) and when?
2- What can they go after if we have to foreclose on the building. I own a couple of homes with no equity in them and have a 401k at my job.
Submitted: 8 years ago.
Category: Bankruptcy Law
Expert:  Roger replied 8 years ago.

1. If you personally guaranteed the loan, it will affect your credit just like if you missa house payment/car payment/cfedit card payment, etc. If you didn't personally guarantee the loans, it will not effect your personal credit.


2. If you are foreclosed on, and the property does not sell for at least what you owe on the property, the lender can seek a deficiency judgment for the difference. Again, if you personally guaranteed the debt, the deficiency can be sought against youu personally.

Customer: replied 8 years ago.

1- the property does not show on my credit report; how will they show late payment?


2- their asking me to report all of my finances, including my 401k safe against a deficiency judgment.

Expert:  Roger replied 8 years ago.
The creditor can register the debt and the delinquency on your personal credit if it chooses.

Your 401k should be safe against a garnishment filed to collect on the judgment.

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