Legal

Ask a lawyer and get answers to your legal questions

Ask a Lawyer,
Get an Answer ASAP!

This answer was rated:

I just received a letter from a bank demanding full payment…

I just received a letter...
I just received a letter from a bank demanding full payment on a business debt I am a guarantor of. The business failed 2 years ago...i have been unable to keep up with debt payment? help!
Show More
Show Less
Ask Your Own Legal Question
Answered in 4 minutes by:
7/9/2018
Legal Eagle
Legal Eagle, Lawyer
Category: Legal
Satisfied Customers: 14,259
Experience: Licensed to practice before state and federal court
Verified

Hello! I am a licensed attorney, admitted to practice in state and federal court. I have a nearly 100% satisfaction rating (click here for more info) so all that means is that you can count on me to help today.

Please keep in mind that our conversation does not include an attorney-client relationship and this is for general information purposes only. What specific questions did you have? I have an idea about your situation, but I don’t want to make any assumptions.

Ask Your Own Legal Question
Customer reply replied 1 month ago
I am trying to figure out what the best option to take on this matter

I'm sorry to hear about that. Have you considered filing for bankruptcy? How did working out a lower payment work out?

Ask Your Own Legal Question
Customer reply replied 1 month ago
the letter demand payment by 7-17-2018
Customer reply replied 1 month ago
I really dont want to file for bankruptcy

I see. What did they say about the lower payment?

Ask Your Own Legal Question
Customer reply replied 1 month ago
The lower payment issues was a while back and I have been unable to keep up?
Customer reply replied 1 month ago
am I truly liable even though my business is now closed?
Customer reply replied 1 month ago
How serious are the banks at coming after me personally for the debt my business owed?

I'm sorry to hear about that. Did you personally guarantee this loan for the business?

Ask Your Own Legal Question
Customer reply replied 1 month ago
I attached a file please read to understand what I am talking about.

Ok, I see. I took a look at it. It looks like you're the guarantor. So, you have a couple of options...

Ask Your Own Legal Question
Customer reply replied 1 month ago
I did

1. You could choose to do nothing. This is difficult because they may put a lien on your personal property or garnish your wages or put a levy on your bank account.

2. You could settle the debt. Sometimes, just settling the debt is the easiest thing to do. It doesn't always appear as if it's the easiest thing to do, but every single day lawyers across the country are explaining to their clients that if they just work on settling their debts in a way that makes sense for them and they are going to be in a better position in the long-term. In my experience, creditors will usually settle balances between 50-65% of the total balance. To facilitate your situation, there’s a site that I’ve used in the past where you can find a good template for debt settlement (click here). It's a bit easier (and cheaper) than going through litigation and I have seen it be effective in the past. If you send this letter and they do not respond, then try sending it again to remind them that settling is really what resolving disputes is all about.

Because I value input, I would like to know what other questions did you have for me today that I can help out with:-)?

Ask Your Own Legal Question
Customer reply replied 1 month ago
If I settle the debt, what options will I have for payment or is it a full lump sum of the negotiate number?

Good question. Most of the time they will accept payments for as long as 36 months, depending on the creditor. In my experience, it is usually between 12-24 months in most cases that they will accept it If you have a lump sum, offer that to them, but payments are often what most creditors, especially Wells Fargo (whom I have negotiated with) will do.

Did you have any other questions for me today? If not, were you satisfied with my service today:-)?

Ask Your Own Legal Question
Customer reply replied 1 month ago
just fill out and send them the settlement template you sent me?
Customer reply replied 1 month ago
wait for them to respond? or should I call the person on that letter?

I would get them on the phone or send this Torres guy an email to start the negotiation process. They are almost always open to negotiation so you should start with that guy then once you agree in principle, then send them the settlement letter. They may have a settlement doc they would send you anyway so you don't even have to send that in all probability.

Ask Your Own Legal Question
Customer reply replied 1 month ago
ok for now...i'll contact the guy and send the letter after the conversation.

Excellent.

Did you have any other questions for me today? If not, were you satisfied with my service today:-)?

Ask Your Own Legal Question
Customer reply replied 1 month ago
no other questions right now...yes

The pleasure is all mine! Unless you have additional questions, there’s just a few other things I’d like you to know before we wrap up this conversation:

  1. Could you look on your screen and provide me a star rating? 5-stars are always appreciated.

  2. You can save me as a favorite if you would like.

  3. For your benefit, you can also click here in the future to request me individually.

  4. Don’t forget, if you haven’t already, you can always sign up for a membership with Just Answer and start asking more questions for cheap.

  5. Don’t forget to tell your friends about justanswer.com!

Ask Your Own Legal Question
Customer reply replied 1 month ago
oops one more question.
Customer reply replied 1 month ago
If I choose to do nothing what are the chances that they'll take those actions you mentioned above? DO they often go through with their threats?

It's a good chance they will. They're banks and their only job is to make money so you could count on them requesting a lien or garnishment of your wages.

Legal Eagle
Legal Eagle, Lawyer
Category: Legal
Satisfied Customers: 14,259
Experience: Licensed to practice before state and federal court
Verified
Legal Eagle and 87 other Legal Specialists are ready to help you
Ask your own question now
Customer reply replied 1 month ago
With regards ***** ***** percentage are they allowed to granes from a 54k loan?

So, according to a trusted source. In OR:

Generally creditors are allowed to garnish the lesser of: 25% of your disposable earnings, or. the amount by which your disposable earnings exceed $218 per week, $435 per two-week period, $468 per half-month period, and $936 per month.

Ask Your Own Legal Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a lawyerLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Legal Eagle Your Own Question
Legal Eagle
Legal Eagle
Legal Eagle, Lawyer
Category: Legal
Satisfied Customers: 14,259
14,259 Satisfied Customers
Experience: Licensed to practice before state and federal court

Legal Eagle is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises!

Gary B.Edmond, OK

My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer.

EricRedwood City, CA

I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight.

MichaelWichita, KS

PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent.

Three H.Houston, TX

Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!!

ElaineAtlanta, GA

It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem.

TonyApopka, FL

Not only did he answer my Michigan divorce question but was also able to help me out with it, too. I have since won my legal case on this matter and thank you so much for it.

LeeMichigan

< Previous | Next >

Meet the Experts:

Ely

Ely

Counselor at Law

24,658 satisfied customers

Private practice with focus on family, criminal, PI, consumer protection, and business consultation.

INFOLAWYER

INFOLAWYER

Attorney

22,843 satisfied customers

Licensed attorney helping individuals and businesses

JPEsq

JPEsq

Attorney

2,132 satisfied customers

Experience as general attorney, in house counsel, SSDI, Family Law attorney, and law professor

Law Educator, Esq.

Law Educator, Esq.

Attorney

44,266 satisfied customers

JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law

Ellen

Ellen

Lawyer, Consultant

8,238 satisfied customers

25 years of experience helping people like you.

Guillermo Senmartin

Guillermo Senmartin

Lawyer

301 satisfied customers

Principal Attorney at Guillermo J. Senmartin, P.A.

Dimitry K., Esq.

Dimitry K., Esq.

Attorney

17,183 satisfied customers

Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.

< Previous | Next >

Related Legal Questions
Credit report: I was an officer at a business. It's loans
credit report: I was an officer at a business. It's loans were paid late to the bank, and it was put in collections. Three of us officers are personally liable (it was paid, btw). Should this be on my… read more
Attorney Wendy
Attorney Wendy
Member
Juris Doctorate
1,387 satisfied customers
I have a PGE commercial account and they are threatening to
I have a PGE commercial account and they are threatening to turn off my power even though I am making payments higher then my usage. Is this legal? … read more
Legal Eagle
Legal Eagle
Lawyer
Doctoral Degree
14,259 satisfied customers
I signed as guarantor when I admitted my dad into an
I signed as guarantor when I admitted my dad into an assisted living center in 2009 after he suffered a severe stroke and was unable to communicate. When he entered he was on Medicaid. He moved from M… read more
Barrister
Barrister
Attorney/Landlord/Realtor
Doctoral Degree
38,266 satisfied customers
I had a judgement issued against me past due debt. I
I had a judgement issued against me for a past due debt. I made a few payments and then received a letter from the firm handling my debt saying they were filing an application for a wage garnishment. … read more
Gerald, Esq
Gerald, Esq
Juris Doctor
4,029 satisfied customers
In Texas, if a business loan from a private source that required
In Texas, if a business loan from a private source that required a personal guarantee defaults, can the private source take your home?… read more
KUMI95
KUMI95
Attorney
Doctoral Degree
17 satisfied customers
If the IRS closes down your corporation and you paid your debt.
If the IRS closes down your corporation and you paid your debt. Now there are no officers if during the time the business was open a loan was taken out and the CEO signed as the guarantor of the note.… read more
Ely
Ely
Counselor at Law
Juris Doctor
24,658 satisfied customers
Texas Property Code 51.003 subsection (d) Any money received
Texas Property Code 51.003 subsection (d) Any money received by a lender from a private mortgage guaranty insurer shall be credited to the account of the borrower prior to the lender bringing an actio… read more
Dimitry K., Esq.
Dimitry K., Esq.
Attorney
Doctoral Degree
17,183 satisfied customers
Hi. Im in West Haven. Ive received a collections letter 12/18
Hi. I'm in West Haven. I've received a collections letter 12/18 from a New Haven attorney, requesting that I respond and pay a business loan debt in full by 12/28. With the holiday, I simply need more… read more
JB-Umphrey
JB-Umphrey
Attorney & Counselor
Juris Doctor
606 satisfied customers
I had a personally guaranteed business loan that I defaulted
I had a personally guaranteed business loan that I defaulted on about a year ago, because the business failed. The total loan was 25k, I owe 15k on it. I still have most of the equipment I bought. The… read more
Legalease
Legalease
Attorney At Law
Doctor of Law w/ highest honors
15,719 satisfied customers
I am being sued for a credit card that I believe I accquired
I am being sued for a credit card that I believe I accquired for my small business. Now I am being sued for $24,000. My first contact w/this collection agency was by a summons to court on May 4, 2011.… read more
MShore Law
MShore Law
Doctoral Degree
1,233 satisfied customers
Is there anyway of getting out of a personally guaranteed business
Is there anyway of getting out of a personally guaranteed business loan, if the business goes Chapter 7 (in NY state)?… read more
Legalease
Legalease
Attorney At Law
Doctor of Law w/ highest honors
15,719 satisfied customers
I AM 1 OF 5 PERSONAL GUARANTORS (AS BUSINESS PARTNERS AND COMPANY
I AM 1 OF 5 PERSONAL GUARANTORS (AS BUSINESS PARTNERS AND COMPANY DIRECTORS) FOR A $8M PROPERTY LOAN; WHEN MARKET COLLAPSED;THE PROPERTY WAS FORCE SALE BY THE BANK FOR A SONG DURING THE ASIAN FINANCIA… read more
Andrea, Esq.
Andrea, Esq.
Attorney
Post-Doctoral Degree
10,512 satisfied customers
i got a summons from a credit card bill that was used for a
i got a summons from a credit card bill that was used for a business that i am no longer associated with and havent been for 2 years but was in my name and i never used but was used by someone in the … read more
MShore Law
MShore Law
Doctoral Degree
1,233 satisfied customers
my mother passed away 2-7-07 we paid a creditor/credit card
my mother passed away 2-7-07 we paid a creditor/credit card collection company 12-19-07 the company never cashed the check. how long do we need to wait to get the money from the bank the bank wants to… read more
cfortunato
cfortunato
J.D.
7,967 satisfied customers
My partner and I have an LLC in Florida. We opened a business
My partner and I have an LLC in Florida. We opened a business credit card account with Bank of America. Although they asked for and I gave them my social security number, I was told, and they convince… read more
Maverick
Maverick
Doctoral Degree
6,327 satisfied customers
Can a bank get a judgement against my real estate from an unsecured
Can a bank get a judgement against my real estate from an unsecured credit card that I am unable to pay now because of a lost job?… read more
MShore Law
MShore Law
Doctoral Degree
1,233 satisfied customers
My son is being sued by Aurora Collection Bureau on the behalf
My son is being sued by Aurora Collection Bureau on the behalf of College America for tuition. They are demanding full payment of approximately $7,900.00 immediately. My son had to drop out due to med… read more
INFOLAWYER
INFOLAWYER
Attorney
Doctoral Degree
22,843 satisfied customers
Can a bank release liens (on equipment) to another ...
Can a bank release liens (on equipment) to another party prior to receiving payment and still demanding payment from the guarantor?… read more
Flagbridge-ADR
Flagbridge-ADR
Principal Consultant
B.Kin, B.C.L, C. Neg, C. Med, C. A
1,786 satisfied customers

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

Show MoreShow Less

Ask Your Question

x