Personal Bankruptcy need help sba loan and bank

[children2]

I obtained my sba loan for 145000 in Oct. I have used 38000 of that money. My equipment dollars came in less and my buildout was more than expected. I notified the bank and now they want $30000.00 for collateral. I don't have it. I will have to file bankruptcy because I am totally broke. I have liquidated the equipment I bought but I due to restocking fees and shipping I could not get the full amount. I signed a personal guarantee - my house which has about 20,000 in equity. I would like your opinion on the odds that they will take my house?

Thank you,
Children2
Illinois

 

[Scooter]

The SBA can be patient, but you will either pay them or they will foreclose on the mortgage.

I don't get how you only used $38,000 of the loan funds, have sold the $30,000 in equipment, and still owe the SBA. Did you sell the equipment and pocket the dough? If so, thats not very nice, and I would expect fairly aggressive tactics from the SBA.

Please explain.

 

[children2]

no I didn't pocket the money - the other part was working capital - advertising, my security deposit on the lease etc. all items I cannot recover. I didn't spend 30,000 in equipment that was the problem - I only spent 18,000 the rest is wc. I cannot recove all of the 18,000.

 

[Scooter]

Well, I'd pay them back what you can, and make a payment plan for the rest. You can't expect them to take the loss and walk away.

I don't entirely understand the reasons for the business failure over 60 days, but the bottom line is that you owe the money and ultimately they will collect it.