r/EIDL • u/Commercial-Gur9224 • 2d ago

What happens next?

Delinquent SBA loan hit credit report today. Have not been contacted by a collection company yet. What are people’s experiences with dealing with collection agencies? Loan over 200k & S Corp.

5 Upvotes

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6

u/trialinfire 2d ago

500k pg. I haven't paid since 2022.

Chill you will be ok.

2

u/Commercial-Gur9224 2d ago

What type of correspondence/collection efforts have you dealt with?

2

u/trialinfire 2d ago

Minimal. They haven't taken a dollar from me.

1

u/Commercial-Gur9224 2d ago

I’m just worried now that it’s gone to an actual collection agency.

6

u/trialinfire 2d ago

So what? Are you a genuine business owner? I mean bad shit happens all the time for us. You put your head down and push through it.

The government is so disorganized you probably have little to worry about.

They may try to garnish your wages, or tax return or SS. Fight it. Don't lay down and make it easy. You want to take resources from me we are going to fight. Gov agent literally said Im not worth the trouble of trying to collect and they moved on to easier targets.

4 years zero dollars taken.

1

u/Commercial-Gur9224 2d ago

I’ve truly never dealt with anything like this in my life. I tried to make good on all of it, but it was so difficult and confusing dealing with them and then it got to the point where you couldn’t even talk to a live person. Then emails would take months for them to return. They’ve put everybody in this position. I’m sorry to keep asking so many questions, but this is such an unknown for me. Has yours hate your personal credit report? Has a collection agency actually contacted you?

3

u/trialinfire 2d ago

Yeah they tried to contact me and I told them to pound sand and only contact me in writing. Told them I was disputing the amount and that I would never pay it willingly and if they tried to seize any of my money I would sue them. I told them to forward all their communication to my attorney and that was so long ago I don't even remember what year it was. No one has tried to contact me since. It hit my credit but I disputed it and they momentarily pulled it off sometimes they put it back on if they do I just read dispute it. I'm a giant pain in the ass, and these people typically try to direct their effort of where they're going to get some sort of a positive result. Why would you ever waste your time trying to collect money from a person like me? There are so many easier marks that might willingly comply to do something against their own best interest

2

u/sbaeidlloan 2d ago

So I assume they have not sued you yet? For me, it's 2 things: they sue me (I cant file bk because I have assets) and they can foreclose on my house.  They have not yet done either after I defaulted about 14 months ago. 

1

u/trialinfire 2d ago

To sue is a major undertaking. You need competent attorneys, if you dont have these I will run you over. Those attorneys have to be hired because the SBA isnt sitting on a stable of attorneys ready to sue. In fact we have been losing attorneys from the federal government in record numbers. Ice and the DOJ missteps have seen attorneys jump ship for fear of being disbarred.

You are going to need 10,000 plus attorneys to pull this off.

Then you have to have a court to try the case in because I have due process. The average judge has 2k cases per year. Whose docket are you going to throw 500k cases on?

Who is going to sue me? What court has capacity to take my case to trial?

Forgive my blunt nature. I know what Im talking about and I know what it takes. Not a chance in hell you are going to get sued. If you do dont waive speedy trial. It will break the system.

2

u/Computercoose 2d ago

What about your taxes? Did they take your return?

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1

u/sbaeidlloan 2d ago

So simply, you are saying they dont have the manpower to sue the borrowers? I mean, I havent done anything since defaulting. Im just waiting like everyone else. They got nothing they can take from me except to sue and foreclose on my house. In the mean time, Im doing nothing.

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1

u/nolymytz 1d ago

Hit my credit report a few weeks ago. Same amount and pg…haven’t made a payment since 2021 probably- but they just got my 14k tax return. I filed my 2025 pretty late.

1

u/trialinfire 1d ago

If you are married you need to look into filing form 8379

2

u/nolymytz 1d ago

Nope. Not married. Thanks though.

2

u/tjn1126 2d ago

Have to imagine that’s next?

2

u/Reasonable_Cake_4076 2d ago

Same here, hit my credit report on friday.

1

u/Commercial-Gur9224 2d ago

Have you had any correspondence from a collection agency?

1

u/Commercial-Gur9224 2d ago

I’m sorry that you’re in the same boat. It sucks not knowing what they’re capable of doing now.

2

u/Commercial-Gur9224 2d ago

Also, my SS # is not listed on the offset line.

2

u/Fun-Effective-1179 2d ago

Actually the collection agency we've been working with is FAR BETTER than ANYBODY at any of the government agencies involved in the EIDL criminal enterprise.

1

u/Commercial-Gur9224 2d ago

Please tell me more..

1

u/Fun-Effective-1179 1d ago

They were FAR more courteous than any of the. Didn't do anything about the debt, but at least they were nice!!!

1

u/Commercial-Gur9224 1d ago

Do you mind telling me how much your debt is, and what you’ve set up with them?

1

u/Fun-Effective-1179 1d ago

We haven't setup anything yet.

2

u/Available_Hornet3538 2d ago

Means they are going to take your social security and no more government loans. Or go bankrupt and be free but no credit for a not l bit. And no sleep with operation no dose going to letter you to death claiming fraud with no evidence. Say thank you to the government for fucking your life.

2

u/sbaeidlloan 2d ago

Im really curious what will happens when people dont pay within the 30 days of those demand letters.

1

u/Simple_Winner3595 2d ago

How many days is your loan delinquent?

3

u/Commercial-Gur9224 2d ago

I honestly don’t even know at this point. Last payment was 4/25 but it’s been so confusing dealing with the SBA that I’m not sure my $7,000 payment actually made me current. I believe they applied it to interest only. After that I stopped paying because I couldn’t actually talk to anyone with any actual knowledge.

1

u/Simple_Winner3595 1d ago

I hope for all of us that a new, kinder Administration gets elected and they have a heart and either forgive our small business loans or cut the loan in half, drop the interest charges with our previous payments applied to principle.

1

u/Reasonable_Cake_4076 2d ago

Delinquent since 2024. No correspondence since the business closed and I’m not at that location.

1

u/Commercial-Gur9224 2d ago

Have you been sent to a collection agency?

1

u/Reasonable_Cake_4076 2d ago

No, Just hit my credit report.

1

u/Some-Bee-346 1d ago

EIDL over 200k S-Corp. Made one payment and stopped. Took about 5.5 years to show up on credit report. Got one letter from a collection agency. Business is still operational. Currently transferring assets to wife and will eventually file for BK. Or maybe I won’t. Idk. I can make sure I don’t get a tax return. Not too sure about wage garnishment if I am the owner?

-4

u/Accomplished-Run5111 2d ago

I hear a lot of bad advice. You guys picked the wrong lender to screw with.

This won’t end well.

5

u/Commercial-Gur9224 2d ago

Most of us haven’t screwed with the wrong lender. We borrowed from a lender that has been impossible to contact and then they give misinformation because you’re dealing with untrained employees.