Breach of contract SBA loan

[stuthomas]

What is the name of your state (UT)?

Is an SBA loan with a breach of contract dismissable with bankruptcy?What is the name of your state (only U.S. law)?

 

[Andy0192]

Who is declaring bankuptcy? You or the business?

Who signed for the loan? Did you provide a personal guarantee?

 

[Antigone*]

What is the name of your state (UT)?

Is an SBA loan with a breach of contract dismissable with bankruptcy?What is the name of your state (only U.S. law)?

Nope, definitely not the SBA portion. I'm not sure about the 2nd TD though. If my memory serves me correctly, this loan is just like a student loan ~ it follows you to the grave.

Uncle Sam is not a forgiving man

I'm positive this was personally guaranteed as well.

 

[bigun]

Generally speaking, most SBA loans are dischargeable.

Bankruptcy - Can an SBA Loan Be Discharged? Q&A Archive on Lawyers.com

Q.
If you file bankruptcy,will it eliminate SBA loans? Does it matter whether the case is a Chapter 7 or Chapter 13?



-- Anonymous

A.
The Small Business Administration's (SBA) claim in a bankruptcy case is just as dischargeable as other business debts. The issue is whether, or to what extent, is the loan secured by your assets.

Many SBA loans are secured by the assets of the business and, often, by the home of the borrower.

Bankruptcy does not eliminate liens voluntarily granted on the debtor's assets. Any part of the loan balance that exceeds the value of the collateral can be discharged.



Most bk lawyers give a free or lowcost initial consultation. Speak with a couple and see what they sugest.