Collateral, SBA Loans and Chapter 7 Intersection
Posted: Wed Dec 19, 2012 8:37 am
Client is holding a few thousand dollars worth of various music products secured by an SBA loan through a local bank. The inventory was noted on the petition, and we have had a few phone calls with bank...but bank is not responding with offer to repurchase equipment or to pick-up. Debtor no longer wants to pay for shed to store product. Is there some abandonment issues that interplay if bank fails to collect? Is a demand letter to collect or abandon with minimum time frame appropriate?
Thanks,
Stephen Stern, Esq.
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