Sba Default Help

faroff

LoanSafe Member
Jul 16, 2012
57
1
8
I filed for BK in 2010 but unfortunately did not get my discharge. Much of what I had in debts
have fallen off due to SOL, and a few paid what I could. I just got in a letter from the SBA out
of the Birmingham, AL. office for a loan I took out in late 2008 and had to default due to my
business closing up. The due date on the letter says 04/01/2009 for 200K.

Any advice if I can settle for a much much lower balance and make payments over time
to pay it? Is there a SOL on this debt? Where do I start?
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,851
467
1,000
49
Southern California
www.loansafe.org
Hello,

I believe you are covered under the federal statute of limitations, and if so, I would just wait for it to fall off...

28 U.S.C.§ 2415(a) establishes the federal statute of limitations applicable to SBA actions to recover under contract. Under this statue the SBA has 6-years to file suit to recover under the contract for non-payment under the Note. More specifically, it be must be filed within six years after the right of action accrued. Section 2416 dictates that the right of action accrues at the point when “facts material to the right of action” are known or should have been known by a government official who is “charged with the responsibility to act in the circumstances.” Id. § 2416

Link: http://www.perliskilawgroup.com/can-the-sba-sue-more-than-6-years-later/
 

faroff

LoanSafe Member
Jul 16, 2012
57
1
8
Hello,

I believe you are covered under the federal statute of limitations, and if so, I would just wait for it to fall off...

28 U.S.C.§ 2415(a) establishes the federal statute of limitations applicable to SBA actions to recover under contract. Under this statue the SBA has 6-years to file suit to recover under the contract for non-payment under the Note. More specifically, it be must be filed within six years after the right of action accrued. Section 2416 dictates that the right of action accrues at the point when “facts material to the right of action” are known or should have been known by a government official who is “charged with the responsibility to act in the circumstances.” Id. § 2416

Link: http://www.perliskilawgroup.com/can-the-sba-sue-more-than-6-years-later/

Thanks Maurice. Unfortunately I pledged property which may not help me with the SOL. :( I did speak
to an attorney who advised me to check the Register of Deeds and see if on the deed if the bank (CIT) is on
there or if it actually says SBA. He said more than likely it will be just CIT which should be helpful to me.
Not sure I understand exactly why. He also said I have 60 days to work with them or it goes to the
Treasury and I don't want that!
 
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Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,851
467
1,000
49
Southern California
www.loansafe.org
You are welcome. This is not my expertise, but it seems that the attorney is right. I wish you the best with your quest and please let us know how it all turns out for you.