Will the bank try to take everything my family has (which is not much)? I don't want to do this but I have not had significant work for 18 months.
You will need to take out the contract you signed with the SBA & look at it. In many instances, the SBA will take both your personal assets as well as business assets as collateral for the loan, which gives them the right to seize these items if you do not make payments.
Hope this perspective helps!
Depending upon your entire financial position bankruptcy may be a good option for you. It will protect you from the SBA. Consult with an attorney.
Lawsuit / Dispute Attorney
Taking out an SBA loan does not mean you will lose everything. There are exempt assets and you have a certain amount of income that is exempt, but the government is typically the guaranteeing agency and will payoff the bank and they try to get you to pay. My web site has a good summary of your options for a typical private debt case, but SBA loans are a private debt on steriods, as they have even more remedies at their disposal. If you do deal with a bankruptcy attorney on this, be sure that they have specific experience with SBA loans.
Robert Stempler (Please see DISCLAIMER below)
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