100k Small Biz line of Credit! Advice ...Please?
Date: Tue, 12/01/2009 - 09:05
I was wondering if anyone had any advice on my sitiutaion.
My wife and I own a small biz. (Sole Propietor) in CA.
We have a Small Business line of credit with Union Bank of Ca
for 100k -- it is a unsecured line not attached to anything.
Business has been real slow for a year or two but we have never been late for 10 plus years!
But we just got one of those letters --- "due to the economic eviroment" we must term out your loan to a five year loan. What ???
So our payment of $ 700 per month (interest only) is going to go to about
$ 2,300 P&I ! I called Union Bank and said I cant afford that big of an increase! They said that they could lower my payment but I would have to sign a Stipulated Judgement to get a lower payment. I was like you got to be kidding me !
A stipulated Judgement does not sound good to me.
We are planning on starting debt settlement but we are concerned about this big unsecured loan.
Do you think we could settle this loan - and at what % ?
Should I agree to the stipulated judgement and take a lower payment?
Has anyone dealt with Union Bank of Ca ?
Do you think they will sue ?
Thanks to anyone who may have advice or suggestions !!
What were the original terms of your line of credit? Can they l
What were the original terms of your line of credit? Can they legal change the terms?
I would be thinking bankruptcy...would serve them right....
thanks soaplady, Well the biz line of credit was a one year li
thanks soaplady,
Well the biz line of credit was a one year line which is renewable every year - like the past 10 years they have always renewed it - and I believe the payment has always been interest only about 700 per month.
This year though they wanted us to reapply for the loan and sign all new loan docs and give them a bunch of other financial info. I basically said no - I have never had to do this before and I did not think that sending them all my updated financials would benefit me - so then- they decided not to renew the line therefore it gets termed out for a 5 year repayment.
We have thought of Bk but we are in a business that has a license and if we could settle our debts out it would be better for us in the long run.
Does anyone else have any advice for our situation ? Thanks
Does anyone else have any advice for our situation ?
Thanks