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SBA Loan Default

 

For owners with defaulted or soon to be defaulted SBA loans

Divorce: "Divvying Up" the Debt



How to turnaround your failing small business & stop SBA loan default

 

 

If you are like many small businesses, you eventually hit a financial roadblock. It may be because of the economy or because your customer's needs have changed. But while you are struggling to survive, you are not only dealing with cash flow problems but also facing SBA loan default. If this is your case, you are not alone. Hundreds of thousands of small businesses all over the country apply for and get new SBA financing every year. And the majority of these will go out of business during their first five years. Facing SBA loan default is common.

So what should you do about it? Should you just default and not pay back your loan? After all, the SBA or Small Business Administration financially backs up all SBA loans through the bank. The bank stands to lose nothing, so why should they pursue you?

The 3 vital factors you must know before filing for business bankruptcy

 

 

 
 
 
 
Divorce: "Divvying Up" the Debt

In any divorce, financial matters can be the stickiest issue for couples to get around. When you carefully consider all of your debts without bias or hard feelings, the both of you can eventually reach an agreement that is fair to all.

Contacting an experienced attorney is the fist step in getting the best divorce advice for your particular situation. Next, you will want to make a list or spreadsheet of all your joint and individual debts, sorting them into three separate columns. Be sure to include the names of your creditors and the balances owed along with the account numbers. Prioritize which are the debts you will need to pay first, such as utility bills and mortgage or rent.

Once you have listed all your debts, assess your individual incomes. Whoever earns the most will naturally be better able to pay a larger chunk of the debt. This is can be a very crucial detail, particularly in the case of women and divorce, since they will many times be the ones to stay home and care for the children throughout their marriage.

Get a copy of both your credit reports. Decide which, if any, debts can be eliminated or paid off immediately. Be logical about how debts are assigned and try to be sensitive to your spouse’s future plans such as going back to college or starting a new business.

Finally, obtain information with regard to debt consolidation and bankruptcy (as a last resort).

Once you and your spouse have sorted out a fair plan, have your lawyer incorporate it into your divorce settlement or judgment of divorce. While there is no such thing as an “easy divorce,” staying civil and calm throughout the debt division process will certainly help to speed things along for the both of you.

About the author:
Nathan Dawson writes for http://www.lifeaftermarriage.coma great online source for finance information.


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