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WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17252
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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I bought a business through owner financing and a SBA Loan.

Customer Question

I bought a business through owner financing and a SBA Loan. I'm going to default on the owner financed loan but I will pay back the SBA loan (I want to avoid bankruptcy). The owner financed loan is secured by the business itself (goodwill, etc.) so I just have to surrender the business, correct? What other implications are there (e.g. credit record). And, how do I "get proof" I surrendered the business and essentially repaid that debt?
Submitted: 4 years ago.
Category: Bankruptcy Law
Expert:  WALLSTREETESQ replied 4 years ago.

WALLSTREETESQ :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificati on

WALLSTREETESQ :

If the loan is secured by the business, that would be taken,

WALLSTREETESQ :

however, if there is a balance remaining the creditor may be able to sue you for any balance left, that will be in the language of your loan agreement.

WALLSTREETESQ :

In terms of knowing that the debt obligation is over, the creditor would send a satisfaction that will state the loan has been satisfied.