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If the loan was in the name of your business and through a bank, they probably would have asked for receivables and/or equipment for collateral. If you were not required to put up either, then chances are you personally guranteed the loan.

What that means is if the business defaults on the loan, you become personally liable.

I'd suggest you call whoever gave you the loan and see what you can work out.

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Thanks....I'm over $60.000 in debt for the biz! And the majoritiy of it is just in my name under my social.....I guess I'm going to call all my creditors and ask them if they are willing to settle (I have a family member that will loan me 1/2 the amount I owe). Knowing that they will probably laugh at me...:lol:8-) I'll then let it go to collections and see what I can do...then maybe file bankruptcy. Any advice???

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If the debts are personally guranteed (which, if the have your SS#, that's the case), then if the business goes under, you are personally responsible for the debt. It will go on your credit reports...they'll start hounding you for the money...and, because it was "business related", the protections of the FDCPA do not apply.

So, you've got two choices...

1. Call the creditors. Don't wait for the CA to get involved, they won't help. Work your way up the food chain past the phone jerks until you get someone who will listen. Give them your story. Its unlikely they'll take 50%, but its worth a shot.

b. Fold the business...and declare personal BK 7 to protect yourself from the business debt. You probably want to go talk with a BK attorney or two right now, just to see what your options are.

(We had a similiar problem. Company went bust...we tried to work things out with the creditors...cashed in our 401k, IRAs, etc....wound up doing a BK 7).

Good luck...we'll answer any questions if we can...

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The money was used for business stuff like finishing the basement (my studio) and equiptment. I do have proper records and receipts.

I do not want to fold the business....I'm finally making a name formyself!

So when I'm making these calls to my creditors....I just keep asking to speak with their supervisor and then their supervisor????

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So when I'm making these calls to my creditors....I just keep asking to speak with their supervisor and then their supervisor????
There's no hard and fast rule about that. You kinda hafta play it by ear. You certainly want someone higher up than the phone jerk, but her/his boss might be enough. It also depends on whether the call center is in the states or not. Obvioulsy, you want someone who's native tongue is English. (Not begin snobbish, just pointing out that they're more likely to be in the states, and, more likely to have the authority to actually do something).
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