I have a business with an SBA loan. The creditor has filed Chapter 11 & could be heading for Achapter 7. What happens to my loan if he files chapter 7?
1 Answer from Attorneys
Re: SBA Loan
If a creditor (lender) holds an SBA loan made to a business borrower(debtor) and the creditor/lender files bankruptcy the borrower/debtor will need to continue paying the loan. The debt would likely be sold or assigned to a new entity. However, banks, savings & loans and certain other financial institutions are ineligible to file for bankruptcy.
For additional information regarding bankruptcy topics please free to visit the Frequently Asked Questions (FAQs) and Blog postings on our website at www.starrandstarr.com.
The foregoing is intended as general information of interest to readers of this website and is not intended as legal advice for your situation. You should consult with an attorney regarding your rights and remedies.