Full question:
I HAVE A COMERCIAL LOAN UNDER MY NAME FOR 30K; THE COMPANY LOAN WAS TAKING 11% OF THE CREDIT CARD MONTHLY BUSINESS SALES, AROUND $3,300.00, FROM MY BUSINESS CHECKING ACCOUNT,SINCE I CLOSE THE BUSINESS ON MARCH 2009 AND THE CHECKING ACCOUNT TOO, THE COMPANY LOAN COULD NOT GET THE MONTHLY PAYMENT FROM ME, I HAVE NOT ANSWERED ANY OF THE LETTERS, PHONE CALLS AND ADVICES THAT THEY SENT TO ME, MY ECONOMY SITUATION IS POOR BUT I'M NOT LEGAL DECLARE BANKRUPTCY, I DON'T HAVE ANY ASSETS, I'M RENTING A HOME, I WANT TO MAKE ARRAGMENTS IN ORDER TO PAY THAT LOAN, BUT I DON'T KNOW, HOW I CAN DO THAT,I NEED TO WRITE A LEGAL LETTER IN ORDER TO EXPLAIN MY ECONOMY SITUATION TO THEM AND MI INTETION TO PAY IN ORDER TO MAKE ARRAGMENTS, OR WHAT I NEED TO DO?COULD YOU PROVIDE THE RIGHT LETTER OR ADVICE? THANK YOU
- Category: Debts and Credit
- Date:
- State: New Mexico
Answer:
The situation regarding your commercial loan depends on whether you personally guaranteed it when it was taken out. Typically, lenders require personal guarantees from business owners. If that’s the case, they can pursue you personally for repayment if the business defaults. If you haven't made payments since March 2009, the lender may take legal action against you or the business. They could file a lawsuit, and if they win, they can enforce a judgment against you. This could involve: 1. **Voluntary compliance**: Sometimes, a debtor will pay off the judgment voluntarily after being contacted. 2. **Judgment lien**: A lien can be placed on your property, meaning if you sell it, the lender gets paid from the proceeds. 3. **Execution and levy**: This involves seizing your property to satisfy the judgment. 4. **Wage garnishment**: A portion of your wages could be directed to the lender. In New Mexico, a judgment can be enforced for up to fourteen years. It may be wise to consult a local attorney or credit counselor to help negotiate with the lender. You can also write a letter explaining your financial situation and your intention to pay, which may help in negotiating a repayment plan. Users can search for state-specific legal templates at .This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.