How Long Do We Have, Realistically?

[lisac77]

We are now 5 days past due on our second loan payment to our primary business loan, which is from the bank that holds the primary lien on the business and all associated property. The secondary lienholder is almost 3 months past due, and we are now late in paying our property taxes. Keep in mind these are all secured debts.

My husband has already informed the banks that he does not have the money to pay them. He is currently hoping that they will float him another $40,000 to continue running the business, but I honestly don't think they are going to give money to someone who is so far behind on his payments.

My question is, how long can we expect these secured loans to go unpaid until they seek to forclose on the property and seek legal action against us? I have the feeling we are on a proverbial precipice, just waiting for someone to file a lawsuit.

[LostOne0069]

I can't say how long until your leinholders forclose... but the first thing I would ask is if you have any UNsecured debt that you can start to let slide to try and keep the business afloat... I mean, if you lose the business it's all over, right? Lose the business, lose the income? I'd stop paying just about ANYTHING else... assuming that the business has a chance to recover and show a profit... if not, cut your losses, file bankruptcy and move on.

Good Luck

[lisac77]

I mean, if you lose the business it's all over, right? Lose the business, lose the income?

No, in this situation the business is not generating any income at all. It has either been breaking even or losing the entire time we've owned it.

I have a job that pays well and we have a significant amount of money coming my way in terms of bonuses in the next couple of months. I actually want the bank to forclose so my husband will be forced to let it go. Every day we keep that business open we're losing that much more money.

[LostOne0069]

Ah, well, I'm sorry I don't think anyone is going to be able to tell you how long the bank will wait before foreclosing. They're all different and a lot depends on your relationship with them and history... etc. etc.

Right now, if I were you , I'd be having some consultations with attorneys to find out how to protect your personal assets in the event that they do forclose and your business has to file bankruptcy. Hopefully in that event it would be your business that files and not you personally and that none of your personal assets will be in danger of being seized.

[tradewiz50]

See a compitent attorney soon.