SBA Backed Loan in Default

[proxyman01]

I have a Citibank SBA backed business loan that was charged off three years ago. Yesterday, I got a call from a collection agency demanding payment on the debt. They have my social security number..... My question is should I send a DV letter, just as I would on a strictly personal debt? Hope I have this posted in the correct Forum.

 

Thanks....

[KYBOSH]

Not directly related to your question (or maybe it is) but did you PG your SBA loan?

[BRBiz]

Not directly related to your question (or maybe it is) but did you PG your SBA loan?

 

All sba loans require a PG

[KYBOSH]

Good to know.

Then I believe the OP should DV the CA as if it were a consumer/individual debt that was being collected on.

 

Good Luck

[BRBiz]

It pretty much is personal to since you PG the loan and now this agency mostly likely bouth this from Citi and will do everything in its power to collect including court action since they now have money invested in this.

Just because a bank charges it off doesn't mean some one else wont try to collect on it, if you owed $10,000 the collection company probably paid $500 for the debt

[KYBOSH]

What are the pros and cons of a business (whose debt have a PG) filing for BK?

Might that be an out for the Op?

[BRBiz]

What are the pros and cons of a business (whose debt have a PG) filing for BK?

Might that be an out for the Op?

 

The problem with that is he still would be liable for the debt unless he declared BK personally also that is the problem PGing any business debt but these days if you need a cash loan or credit card your going to have to PG them all. Any time you PG some thing you are the co signer

[proxyman01]

FYI, I sent a DV to the CA and have not received any calls within the last couple of days. Let's see what happens.....