Our business has a ground leas 33 years, we have 3 loans: 1 conventional loan $1.2 mil. from a large bank. 2nd loan is an SBA 504 for $.5 mil. 3rd is a private investor for $.5mil. We have been uanble to pay these loans due to bad weather & bad economy. past 3 months we have been paying interest only to the SBA and the bank. The bank refuses to give us interest only for 1 year, due to our hardship. They have assigned us to a "Credit Group" who only wants to collect the past due balance, without any written aggreement or promises for interest only. Now they threatened to send us a demand payment letter and sherriff trust dead sale. What are our options w/ the bank? If we end up declaring BK can SBA loan be discharged as well as the bank? Based on S Corp. do we personally declare BK?
Intellectual Property Law Attorney
There are many issues you presented. You need to immediately consult with a bankruptcy attorney that can gather all the facts and provide some advice on your options for going forward and protecting your business, your assets and your livelihood. There are too many options and possibilities to even begin to discuss them in this forum. Most bankruptcy attorneys will provide a free initial consultation so take them up on it and seek their advice. You might consider speaking with more than one or two so you have different perspectives too.
The above is not legal advice, please consult a bankruptcy attorney.
You need to hire a highly experienced bankruptcy attorney to advise you about all the options. You should retain someone for several hours to review the documents and research issues that are likely to arise. There is likely substantial personal liability to you even if you are operating as a corporation that might require you to file bankruptcy assuming that is something you could do. This is not a matter that you can handle during a free consultation like the ones offered for people with simple bankruptcy cases for credit cards and too many medical bills. It would even be too difficult for a lawyer to give you any kind of accurate estimate of total fees after a half hour consultation without researching the case.