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WUFT is reporting that virtually all PPP loans have been forgiven with limited scrutiny. The article can be found at https://www.wuft.org/nation-world/2022/10/12/virtually-all-ppp-loans-hav....
Jim Shenwick, Esq 212-541-6224 [email protected]

 EIDL Loan Default Questions & Answers
As many readers  of our blog posts know, at Shenwick &Associates we are representing many individuals and companies that have defaulted on  Economic Injury Development Loans (EIDL) from the SBA.Below are commonly asked questions and answers that we have been asked regarding EIDL  loan defaults.
1.  Question: If I personally guaranteed an EIDL  and my company  defaulted on the loan and I guaranteed that loan, can the SBA foreclose and take possession of my house?Answer:  Yes.  However in New York state if the borrower owns the house with his wife, as tenants by the entirety and the wife did not guarantee the EIDL loan, then the SBA cannot foreclose and obtain   possession of the house. The borrower can continue to live in the house. However, the borrower and his wife will not be able to sell or refinance the house, as a result of the SBA judgment. 2.  Question: If I default on an EIDL  loan and I have not closed the business or sold all of the assets, can I make an offer in compromise (OIC)  with the SBA regarding the loan default?Answer:  Generally no, one of the conditions of an OIC is that the business has closed and all of the assets of that business have been sold.3. Question:  if my business files for Chapter 7 bankruptcy protection, will that bankruptcy filing stop SBA collection actions against the company?Answer:  Yes, a Chapter 7 bankruptcy filing stays SBA collection actions due to the automatic stay under Section 362 of the bankruptcy code.  The automatic stay comes into effect when a bankruptcy case is filed and the debtor needs to take no further action after a bankruptcy filing to stop SBA collection actions.4. Question:  If my company files for chapter bankruptcy protection, am I still personally liable if I guaranteed an SBA loan, notwithstanding the company's bankruptcy filing. Answer: Yes, if the company files for Chapter 7 bankruptcy and the principal guaranteed the loan, then the SBA can pursue the guarantor for money due under the SBA loan.5.Question:  If I guaranteed an EIDL  for my company, and my company files for Chapter 7 bankruptcy or closes, and then I file for chapter 7 bankruptcy, will my  personal chapter 7  bankruptcy filing stop SBA collection actions against me?Answer: Yes.  If an individual files for Chapter 7 bankruptcy due to an EIDL default or  other judgments or debts, the automatic stay in the personal chapter 7 bankruptcy filing stops  SBA collection actions against the individual (also known as the debtor).6. Question: If my company defaults under an SBA loan, can the SBA foreclosure (take possession) of the company' property or assets that were collateral for the SBA loan?Answer: Yes, EIDL loans for more than $20,000.00 required that the company enter into a UCC-1 and Security Agreement for the benefit of the SBA and those documents allow the SBA to foreclose/take possession of those assets.7. Question: Where can I learn more about EIDL defaults and bankruptcy filings?Answer: At Shenwick & Associates we have a blog with many posts on this topic, which can be viewed at https://shenwick.blogspot.com/ Our EIDL posts include the following:  http://shenwick.blogspot.com/2022/07/eidl-loan-workouts-and-bankruptcy.html http://shenwick.blogspot.com/2022/07/eidl-loans-and-sba-offer-in-compromise.htmlhttps://shenwick.blogspot.com/2022/07/eidl-loan-default-document-review.htmlhttps://shenwick.blogspot.com/2022/07/eidl-defaulted-loans.htmlIndividuals or businesses who would like to speak to Jim Shenwick, Esq. regarding EIDL loan defaults and bankruptcies can  contact him at  [email protected] or 212 541-6224.

If you are considering filing for personal bankruptcy, you may be feeling overwhelmed and intimidated by the process. Whether you are confused about the types of bankruptcy or are not sure how to proceed with the chapter you have chosen, there are lots of questions you may have. Before you begin, here are a few+ Read More
The post What to Do Before Filing for Bankruptcy appeared first on David M. Siegel.

Once up a time: Widow Anna saves her house and clears her debt with Chapter 13. Once up a time, an elderly widow named Anna needed to replace the HVAC in her townhouse. Her air conditioning broke down and she needed to fix it. Anna was poor.  She had $1404 monthly from her retirement and […]
The post Once Up an Time: A Chapter 13 Story by Robert Weed appeared first on Northern VA Bankruptcy Lawyer Robert Weed.