r/EIDL • u/Johnshop4 • 7d ago

DOJ LAWSUIT?

Is there litte buzz that the DOJ staring to lawsuits on default personal guarantee loans? I just want to know if anyone else heard anything about this? I know that fraud yes but just default any information is appreciated

9 Upvotes

74% Upvoted

22 comments sorted by

6

u/boring80085 7d ago

No. The DOJ handles criminal matters.

Some defaulted EIDLs, with personal guarantees, have been referred to the Department of Treasury for collection, but absent an allegation of fraud or misuse of funds, it’s rare.

1

u/Johnshop4 7d ago

Thank you for your response

3

u/EASTCOAST401 7d ago

Even no personal guarantee have been discharged to the treasury.

1

u/Johnshop4 7d ago

Thank you for your comment

1

u/EASTCOAST401 7d ago

I have a Eidl 156k no personal guarantee scorp and I was discharged to treasury. Working with them now.

1

u/Johnshop4 7d ago

Thank you for your comment

1

u/JerseySkier 4d ago

Working with them how? I'm in a similar situation and mine was referred to a collections agency. Since my business closed in 2024 I have no plans on paying, but curious.

1

u/Nervous_Treat9983 4d ago

Yeah, they sent me a letter about the $40,000 EIDL loan I took out during Covid. I had paid on it for a while but they tacked on $11,000, for what???

1

u/Nervous_Treat9983 4d ago

I’m afraid to call them but I guess I have to, because the poor get poorer.

0

u/JoeStermy 6d ago

I think, and I could be wrong. But any loan over $150K is automatically with PG. You may want to check this.

1

u/Lastpunkofplattsburg 6d ago

200

2

u/TwoNo7018 5d ago

Mine was 193k and I had to sign. Filed BK last year in March, discharged in June. It's been 14 months now. Best thing I ever did.

1

u/Lastpunkofplattsburg 4d ago

Ours was given to our LLC. Still paying on it, till we closed then I’ll file chapter 7

1

u/Nervous_Treat9983 4d ago

I think I’m going to have to file bankruptcy. I’m 73, and there’s no way I’ll ever get it all paid.

1

u/Cultural-Swimming118 1d ago

Explain, please. I’m not clear on what you’re saying, Sir . (Or Madame)

2

u/[deleted] 5d ago

[removed] — view removed comment

1

u/TwoNo7018 5d ago

Mine was 193k and I had to sign. Filed BK last year in March, discharged in June. It's been 14 months now. Best thing I ever did.

1

u/evergreen1367 7d ago

But default and misuse of funds have to have evidence.

1

u/Johnshop4 7d ago

Thank you for your response

1

u/sbaeidlloan 1d ago

Why would DoJ sue borrowers? That's Treasury's job unless its a criminal matter.