Are SBA Loans Dischargeable in a Chapter 7 Bankruptcy?

Yes.

Be sure to distinguish between a businesses bankruptcy, individual bankruptcy, loan guarantee, and secured SBA loan. SBA loans are dischargeable in a Chapter 7 bankruptcy. SBA loans are also dischargeable in a business bankruptcy.

If the SBA loan is guaranteed by an individual Chapter 7 debtor, then personal liability is discharged in the individual Chapter 7 bankruptcy. If the SBA loan is secured, then the security interest is not extinguished by the bankruptcy.

Schedule Your Free Consultation Today

We are here for you if you have questions about filing for Chapter 7 bankruptcy. Contact us online today or by telephone at (888) 910-6652 to schedule your free initial consultation with an experienced bankruptcy lawyer

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
Categories