Legal Question in Business Law in New York

bad debt

i owe a company 25,000 for a business i closed it was a corporation but i personally guarenteed the loan. i only can afford to pay 200.00 per month right now and will up the payment as i pay down the debt i have. they said no to the 200.00 and want more monthly, i don't have it. can they not take the 200.00 and demand more? now what do i do i can't give them more then that right now


Asked on 8/21/08, 2:46 pm

1 Answer from Attorneys
Nancy Delain Delain Law Office, PLLC

Re: bad debt

A personal guarantee of a loan sticks you personally with paying the loan back.

Depending on the interest associated with the loan, it could be that $200/month won't cover the interest accruing on the loan.

Yes, the creditor company can go after you personally and obtain a judgment against you personally (whereby the creditor could attach your real and personal property, garnish your wages, and do all sorts of other nasty things to you), which is why you need to hire a lawyer who handles bankruptcy and debtor/creditor law NOW. This lawyer should be located geographically close to you. If you are in Columbia, Greene, Albany, Schenectady, Schoharie, Saratoga, or Rensselaer County, you're welcome to contact my office; we handle such things regularly.

THE INFORMATION PRESENTED HERE IS GENERAL IN NATURE AND IS NOT INTENDED, NOR SHOULD IT BE CONSTRUED, AS LEGAL ADVICE. THIS POSTING DOES NOT CREATE ANY ATTORNEY-CLIENT RELATIONSHIP BETWEEN US. FOR SPECIFIC ADVICE ABOUT YOUR PARTICULAR SITUATION, CONSULT YOUR ATTORNEY.

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Answered on 8/22/08, 12:06 am


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