I got sued for a deficiency on a commercial property I personally guaranteed

Asked by justawalker55, Bakersfield, CA Sat Jun 9, 2012

I just got a summons for a 135000 personally guaranteed commercial loan and need to know what to do next? I dont pass the means test for chapter 7 bcuz of income but have limited assetts. Should I get an attorney?

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5
Ron Thomas, Agent, Fresno, CA
Sat Jun 9, 2012
I would advise you to listen to Dan Tabit,
he really knows what he is talking about!
1 vote
Dan Tabit, Agent, Issaquah, WA
Sat Jun 9, 2012
Justawalker,
YES! The only advice we are qualified to offer to you is get an attorney. They will need to review the loan documents, your guarantee, your assets and other liabilities to begin to advise you.
1 vote
Dee Oliver, Agent, Bakersfield, CA
Sat Jun 9, 2012
I would recommend that you definitely speak with a real estate attorney as soon as possible. If that attorney feels your problem is outside of his specialty, he should be able to refer you to an attorney who can help you. Be sure and read the Summons and track the date you were served so you get the appropriate response filed before the attorney suing you can take your default.
0 votes
Steven Ornel…, Agent, Fremont, CA
Sat Jun 9, 2012
justawalker55:

I agree with Suzanne, seek legal representation immediately.

CA Commercial property does not have deficiency protections afforded to primary residences as detailed below:

"CA Senate Bill 458 Now Prohibits 1st/2nd+ Deficiency Judgments*"
http://www.trulia.com/blog/steve_ornellas_mba_re_mastersgri/…

-Steve
0 votes
Suzanne MacD…, Agent, Succasunna, NJ
Sat Jun 9, 2012
Absolutely! You may at the very least be able to negotiate the amount and set up some sort of payment plan. You need to explore all options and the only way to do that is through an attorney.
0 votes
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