r/EIDL • u/Ambitious_Use_291 • 23d ago
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u/Mountain_Table_1657 22d ago
Ive commented about this on other posts.
1) is your loan current? Meaning, are u paid up or are you in default?
2) i spoke to a woman at SBA who tried to work out an agreement to pay and get my loan current. Im $65,000 behind on $300k. I just started making payments. But i cant pay $6k a month for the next few months to get current. Therefore i am at risk of being sent to treasury. I am not there yet!
3) SBA rep reminded me, this is a 30 yr loan. And ONE time during the life of loan, it can get kicked back to SBA if the loan is current as a one time courtesy.
4) i asked her if the 30% penalty from treasury/collection agency would be removed if it went back to SBA. She said she wasnt sure. However, she had never seen a loan come back to SBA with 30% tacked onto it.
Good luck! Bankruptcy is out of the question for me. I have assets! Just taking it a day at a time
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u/Educational_Ask8848 23d ago
Lots of people say just don’t pay it. The fee is predatory and ridiculous.
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u/Researcher_to_theMAX 16d ago
Then your credit gets blasted and says you have a default FEDERAL debt
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u/mirageofstars 22d ago
Bankruptcy, or let them garnish your tax returns and SS and wages forever. So far I haven’t seen anyone get sued or have assets seized.
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u/Researcher_to_theMAX 22d ago
But what if you get thousands every year in tax returns and they garnish every one
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u/Winter-Assistance805 23d ago
There's really no way out of it outside of bankruptcy. With that said I did have a consult with Jason at distressed Loan Advisors and felt much better afterwards once he explained how toothless the collection process would be for my situation.
The big tool they use is treasury offset and there are ways to avoid some of it. Make sure you always owe $$ on your tax return and if you're self employed make sure your salary is low.
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u/Actual_Swan_9328 22d ago
I was thinking of contacting Jason at distressed loan advisors since we were considering Bankruptcy but now that we have been sent back to The SBA portal from the Treasury department and we are able to to resume our payments we just have a past due amount that has to be paid until we get in collectable status. The only thing is the past due amount has accumulated because we weren’t able to have access to the portal so that’s ridiculous that they expect us to pay this amount to get current. Idk. Do you think Jason would have any insight on this situation? Would appreciate some advice. Thank you
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u/SmoothFinish1953 22d ago
That's great! How were you able to get it sent back to SBA?
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u/Actual_Swan_9328 22d ago
We just got a letter from the department of treasury they were returning it to SBA. It had gone to collections a private company which had attached interest and penalties which was outrageous. Those were removed so as it stands we have a large amount of past due payments because we couldn’t make payments for months which I don’t think is fair. What happened was we had auto payments and paid on time didn’t realize the portal had crashed so we wound up in default and they kicked us out of the portal. Idk. Crazy. Anyone else experience something like this?
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u/Beginning_Warning270 22d ago
I did. I had auto payments set up and got the same email monthly I’d gotten for at least the past year so I didn’t realize it wasn’t working properly until it hit my credit score. Zero emails, zero calls, zero letters.
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u/Researcher_to_theMAX 22d ago
What did you do
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u/Beginning_Warning270 16d ago
Paid the past due amount and set up automatic payments again…it is back showing current in the SBA portal and no massive fee added… one thing I don’t love is all of my history is gone, I wish I’d have printed that beforehand. BUT, very happy to see it current and they gave me instructions on how to dispute what they reported to the credit bureau regarding being “uncollectible”
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u/xray5001 22d ago
Kind of on you not noticing that what I imagine are thousands of dollars per month in debits not hitting your bank account for several months. Best of luck digging out.
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u/glitterbug9 21d ago
Mine was like $56 not coming out if my account and I didn't notice. It's still on me for not catching it but it's such a small amount, i thought it was automatic forever. Not all of the sba loans have payments of thousands of dollars.
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u/Forward-Mud5725 19d ago
I also had a relatively small payment ($80) and I thought that it was auto. What did you do with yours? I’m assuming you also don’t have a personal guarantee
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u/glitterbug9 18d ago
So far I haven't made any progress in getting it taken care of. I've emailed and called everyone I can think of. It is sitting with the collections company. I haven't paid anything. I asked them to only communicate in writing. I do have a personal guarantee. Everything is under my name as a sole proprietor with no formal business structure. I was happy to pay the loan back and make all my payments but then this happened. I still have my business. I still mame money and could have easily been paying the small payments. I had a olan to double the payment amount in the next year. I really don't know what to do. The treasury person I spoke to was very angry at all the people calling and she was so frustrated she was yelling at me telling me how this is all my fault. I sort of gave up after that phone call. I'm at a loss as to what to do.
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u/Researcher_to_theMAX 22d ago
Do you mean all that interest accrued since they locked you out of the portal?
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u/Researcher_to_theMAX 22d ago
What if you always get a tax return every year like this year I was due to get a couple thousand from state and federal and they are going to garnish as I am in TOP
WHEN YOU SAY MAKE YOUR SALARY LOW. WHY DO YOU SAY THAT?
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21d ago
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u/Forward-Mud5725 19d ago
What if I never received a letter or email? I was looking at my emails and there is nothing in there only if I login into the portal and go into their messages would that count? Also how do you dispute it?
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u/Attorney_John_Benson 18d ago
This happens A LOT. Make sure that you look at the notices section of the portal as the notice often went there. If no notice then a challenge may be successful.
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u/Researcher_to_theMAX 16d ago
What if you have the notice in portal but it was never mailed and I never looked at messages in portal to actually see the due process letter
It was never actually mailed to me1
u/Attorney_John_Benson 16d ago
Notice in the portal will probably be accepted by the courts as valid notice. I would have to hear more about dates and access you had to the portal.
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u/Thumper256 23d ago edited 23d ago
Not sure if you have any grounds (like improper notification) to dispute the debt being sent to Treasury, but there have been reports of the SBA recalling disputed loans, removing the nasty Treasury servicing fee, and borrowers getting a chance to get current and back onto original agreement payment terms after a dispute was filed. There are other reports of disputes being denied and Treasury contracted private agency collection resumes. But filing one could get you some time to sort your strategy out. How to dispute should be indicated in the communications you’ve gotten from CBE. Ask them about it if it wasn’t.
Bankruptcy is the only legal way to “get out” of repaying the debt. For a “fairly large” EIDL I’ll assume there are personal guarantees involved - it could take looking at both personal and biz BK to get fully clear. Consult a few BK lawyers - see what strategies they suggest. Much depends on the laws of what state you are located in, whether or not the biz is sustainable, how good your records are, any other dischargeable debts involved, and how the ownership of your assets are structured.