safe guard you home if a business loan is taken against it?



Is there any way possible to safe guard you home if a business loan is taken against it from bank and you are not in condition to repay you business loan?

3 Replies to “safe guard you home if a business loan is taken against it?”

  1. First, it depends on what is in the business loan papers.

    Did you, as the business owner (or one of the business owners), personally guarantee the loan or use the house as collateral.

    If you are not the business owner or did not personally guarantee the loan or use the house as collateral for the business loan, your home should not be part of it.

    Second, if you file bankruptcy because of not being able to repay the loan, the home may be shielded in part, under state exemptions.

    Third, take out a home equity loan for as much as you can (if you can get the loan), so that there is no profit in trying to get the home from you.


  2. The co sharers of the house property in question if would have agreed & jointly mortgaged the same while obtaining the loan from bank, then, there is no way out. If not, then, there is some hope, in litigating upon the issue, through the person, who has not signed or consented for creation of mortgage of the house. Thanks.


  3. The best solution:Negotiate with your banker and arrive at the total outstanding as on 31.12.2009.If you could make arrangements for clearing the loan before that pleaase do that.If not possible,go for a second charge with another financier for that consolidated amount seeking one year time with the new financier.Thereafter if you are able to raise funds from any other source then clear it.If you find that you do not have sources,then the best alternate arrangement that you could make is that just arrange to sell the property for the best price and discharge the debt and have the balance.What ever decision you take please have a time frame for carrying out each decision.Leaving these things if you go to Court,definitely you would get the best time and ultimately after passing several years you would find that the interest burden and all other expenditures simply engulfing the whole house property.Nothing would be left for you.





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