Legal Question in Banking Law in Utah

My husband personally guaranteed himself on an sba loan so that his business partner could get a loan. The partner filed bankruptcy. The loan defaulted. The bank would not work with my husband to make payments and sent it to us treasury. He made an offer and compromise for half the balance, but it was rejected. My husband worked out payment plan with treasury of 250 a month until 37k balance paid. He has made 2 payments. Yesterday a letter came from a collection agency working for treasury dept. He called and they said his deal with treasury is off. They gave him 3 options for payments, but we cannot afford them. We have a lot of equity in our home. Will they foreclose? If I deed him off of our house, can that stop foreclosure? We live in Utah. We had excellent credit before this, but the collection agency indicated that it will be ruined after this.


Asked on 4/19/12, 9:47 pm

1 Answer from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

You should get back in touch with the Treasury to save the initial deal. If you have something in writing with the Treasury the collection agency cannot 'cancel' it.

Before the collection agency can take any action such as foreclosure or garnishment they need to get a judgments. I understand how collection agencies work and the legal restraints under which they operate. I can help.

Please call for a free consultation.

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Answered on 4/20/12, 9:34 am


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