SBA loans are dischargeable in Bankruptcy

COVID-19 has had a devastating effect on small business owners in Texas and across America. The shuttering of your business and the seizure and liquidation of its assets can be a painful and emotional time for many entrepreneurs. In some cases the the accumulation of business credit card debt, secondary loans, and broken leases can simply be too much. In those instances, an SBA offer-in-compromise may not be possible when faced with the prospect of also settling many other large debts as well. it may be better to preserve protected assets like you homestead equity and retirement accounts in order to protect your family’s future.  Bankruptcy is not always the right tool for an SBA loan default, but sometimes it can be the best solution to end the stress and begin the process of normalizing your life.

Stop Bill Collectors & Bank Lawsuits

If you are facing an SBA loan default, filing for relief under Chapter 7 of the U.S. Bankruptcy code can discharge the promissory Note with your Bank and free you from the burden of an SBA debt that is simply no longer manageable.

How can Bankruptcy protect me from a defaulted SBA Loan?
1. Upon filing Bankruptcy your Bank must generally stop all collection efforts
2. Lawsuits filed by your Bank will be automatically stayed
3. Foreclosure proceedings on property pledged for collateral must stop
4. Bill Collectors must stop calling you about your defaulted SBA loan
5. Bankruptcy can stop wage garnishment by the U.S. Treasury Department
6. Commercial lease guarantees can may be discharged
7. Franchise contract obligations may be discharged
8. Credit card debt may be discharged

I live in Texas, can Bankruptcy help me get a Fresh Start?

If you live anywhere in Texas, contact the attorneys at the Perliski Law Group to find out how Bankruptcy may be able to help you discharge your SBA loan guaranty. We may be reached at (214) 446-3934 or using the Contact Form on this page.