It would depend on the terms of the loan. If the lender took a lean against your business or personal assets - they they can take and sell those assets. If you have a personal guarantee - then the lender can go after your personal assets like wage garnishments, retirement funds, savings, etc.
Not only will the lender go after the outstanding balance of the loan - but also any unpaid interest as well as all fees related to your default to include legal fees and selling fees.
You best option is to call you lender. Explain your situation and try to work out a deal. Most lenders will right down or write off the loan when you get several payments behind (I don't recommned you get behind on any payments). Thus, if they have written the loan off - you have a bit of power in negotiating a new deal - the lender would be happy to get something and not have to go through all the time and expense of a default.
It would depend on the terms of the loan. If the lender took a lean against your business or personal assets - they they can take and sell those assets. If you have a personal guarantee - then the lender can go after your personal assets like wage garnishments, retirement funds, savings, etc.
Not only will the lender go after the outstanding balance of the loan - but also any unpaid interest as well as all fees related to your default to include legal fees and selling fees.
You best option is to call you lender. Explain your situation and try to work out a deal. Most lenders will right down or write off the loan when you get several payments behind (I don't recommned you get behind on any payments). Thus, if they have written the loan off - you have a bit of power in negotiating a new deal - the lender would be happy to get something and not have to go through all the time and expense of a default.
BusPlanMaster | Window Shopper |
1/18/2011 - 8:45 am
Show Replied Text…
It would depend on the terms of the loan. If the lender took a lean against your business or personal assets - they they can take and sell those assets. If you have a personal guarantee - then the lender can go after your personal assets like wage garnishments, retirement funds, savings, etc. Not only will the lender go after the outstanding balance of the loan - but also any unpaid interest as well as all fees related to your default to include legal fees and selling fees. You best option is to call you lender. Explain your situation and try to work out a deal. Most lenders will right down or write off the loan when you get several payments behind (I don't recommned you get behind on any payments). Thus, if they have written the loan off - you have a bit of power in negotiating a new deal - the lender would be happy to get something and not have to go through all the time and expense of a default.
There are of course a number of factors that determine how ambitiously a creditor will pursue you:
1. How large the loan is. Small loan defaults may end up in Small Claims Court, not Superior Court.
2. Whether or not you are a personal co-signer on a corporate loan. (Very often, as a new business you will be required to be a co-signer.)
3. What collateral, if any, was provided with the loan.
4. Whether or not the creditor is still is business. I hate to list this one, but it is one of the realities of business.
And, yes, talking it over with your creditor is always the best action. If you can keep your personal credit clear by paying off the loan, then perhaps at some point in the future you will be able to obtain another business loan.
MaryAnnBusiness Plan MasterThe Business Plan for a Tough Economy
---This post was edited to remove a commercial link. Read our discussion policies for more Community best practices.
It would depend on the terms of the loan. If the lender took a lean against your business or personal assets - they they can take and sell those assets. If you have a personal guarantee - then the lender can go after your personal assets like wage garnishments, retirement funds, savings, etc. Not only will the lender go after the outstanding balance of the loan - but also any unpaid interest as well as all fees related to your default to include legal fees and selling fees. You best option is to call you lender. Explain your situation and try to work out a deal. Most lenders will right down or write off the loan when you get several payments behind (I don't recommned you get behind on any payments). Thus, if they have written the loan off - you have a bit of power in negotiating a new deal - the lender would be happy to get something and not have to go through all the time and expense of a default.
There are of course a number of factors that determine how ambitiously a creditor will pursue you:
1. How large the loan is. Small loan defaults may end up in Small Claims Court, not Superior Court.
2. Whether or not you are a personal co-signer on a corporate loan. (Very often, as a new business you will be required to be a co-signer.)
3. What collateral, if any, was provided with the loan.
4. Whether or not the creditor is still is business. I hate to list this one, but it is one of the realities of business.
And, yes, talking it over with your creditor is always the best action. If you can keep your personal credit clear by paying off the loan, then perhaps at some point in the future you will be able to obtain another business loan.
MaryAnnBusiness Plan MasterThe Business Plan for a Tough Economy
---This post was edited to remove a commercial link. Read our discussion policies for more Community best practices.
If you and your wife co-sign for a loan, and one of you dies, then the survivor is still liable for the loan, as is the estate of the deceased.
Presumably, your wife would be the executor of your estate, so she would sign all legal forms and pay for your liabilities (including loans like this) as best she could from your estate. If she co-signed on the legal forms for the loan, she would be responsible for the rest.
You can apply for a loan without her, but if she is a co-owner of your business the bank may require her to provide information and/or sign for the business loan as well.
Hopefully that answered your question,
Message Edited by RentalLease on 08-20-2009 11:58 AM
If you and your wife co-sign for a loan, and one of you dies, then the survivor is still liable for the loan, as is the estate of the deceased.
Presumably, your wife would be the executor of your estate, so she would sign all legal forms and pay for your liabilities (including loans like this) as best she could from your estate. If she co-signed on the legal forms for the loan, she would be responsible for the rest.
You can apply for a loan without her, but if she is a co-owner of your business the bank may require her to provide information and/or sign for the business loan as well.
Hopefully that answered your question,
Message Edited by RentalLease on 08-20-2009 11:58 AM
'RentalLease' is correct: (a) If you and your wife co-sign for a loan, and one of you dies, then the survivor is still liable for the loan, as is the estate of the deceased; (b) If your wife does not co-sign for the loan, and you die, then your estate is liable for the loan - and depending on the State law where you live, your wife may or may not be individually liable.
'RentalLease' is correct: (a) If you and your wife co-sign for a loan, and one of you dies, then the survivor is still liable for the loan, as is the estate of the deceased; (b) If your wife does not co-sign for the loan, and you die, then your estate is liable for the loan - and depending on the State law where you live, your wife may or may not be individually liable.
phanio | Contributor | 1/18/2011 - 8:45 am
phanio | Contributor | 3/23/2010 - 1:22 pm
BusPlanMaster | Window Shopper | 1/18/2011 - 8:45 am
BusPlanMaster | Window Shopper | 3/23/2010 - 1:22 pm
housemE | Window Shopper | 8/17/2009 - 8:58 pm
housemE | Window Shopper | 3/23/2010 - 1:22 pm
RentalLease | Creator | 8/20/2009 - 11:56 am
RentalLease | Creator | 3/23/2010 - 1:22 pm
CrestCapital | Creator | 8/21/2009 - 5:01 pm
CrestCapital | Creator | 3/23/2010 - 1:22 pm
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