Legal Question in Bankruptcy in New York

bankruptcy and sba loan

I filed for bankruptcy and was discharged i/97. I had an SBA loan at the time and I assumed that that was included in the bankrupdy-chapter 7. The SBA lon had my house as collateral and they are on the mortgage. I am trying to refinance my house and I would like to know for sure if the SBA loan was covered under my bankruptcy. It was listed as a secured loan. I have never recieved and type of notice and I thought it was covered , am I right or wrong


Asked on 5/22/03, 12:02 pm

1 Answer from Attorneys
Andrew Nitzberg Andrew Nitzberg & Associates

Re: bankruptcy and sba loan

This is a good question. Whereas all debts to the government (usually taxes and student loans) are not discharged in Bankruptcy, the SBA loan may be an exception. In my opinion, the SBA loan is discharged under your bankruptcy. However, if the SBA disputes this fact (they are the government and can be very stubborn) you must determine this before you go any further in your life. You do not want to wait until they begin making trouble for you to respond to their claims. That can be very expensive. Resolve it now. The best way to determine this is to contact the SBA directly. If they claim the debt is still owed, contact me and I will strive to convince them otherwise. There are numerous ways to accomplish this. You are welcome to a consultation at no fee at my offices at 42 West 44th St., NY,NY. Please call for an appointment first - 646-591-5786.

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Answered on 5/22/03, 3:45 pm


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