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Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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My ex and I got a SBA loan for about $250k for a new business.

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My ex and I got a SBA loan for about $250k for a new business. My ex filed for bankruptcy and I'm heading down the same path in order to keep the equipment and keep the business. Through bankruptcy I will only have to pay for 26k of the loan, which is what the secured amunt appraised at.
The bank that I originally got the loan from has filed relief from the state for the sba portion of the loan. At this point in time who is entitled to the collateral the government or the original bank that has bee pursuing me to take the equipment?
I don't want to go bankrupt, but I cant afford to pay back 250k to keep 26k of equipment. Any suggestions?
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 6 years ago.

I am a lawyer with 25 years experience. While I am permitted to provide you with legal information, I am prohibited by and various state bar associations from giving legal advice, representing you or entering into an attorney-client relationship through this open forum. Do you understand and accept these provisions as well as's disclaimer?

Please respond with a Yes or No to continue.
Customer: replied 6 years ago.
I accept everything and the fine print, lol!
Expert:  Ellen replied 6 years ago.
Are you in a chapter 13 bankruptcy? If the SBA loan is for 250K, what was your theory for paying only 26?
Customer: replied 6 years ago.

The 250k was buildout, start up cost, equipment, ect. I am in the process of a chapter 13. The collateral equipment was appraised at 26k. Considering it is a secured debt I would have to pay the full value of the equipment being 26k, right?

I need the equipment to support myself, but wouldn't be able to afford the full payment of the's just a big mess :-(

Expert:  Ellen replied 6 years ago.

Typically an SBA loan would secure the entire 250K. against the equipment and you would not be permitted to treat the difference between 26 and 250 as unsecured absent the consent of the creditor.
Ellen and other Bankruptcy Law Specialists are ready to help you
Customer: replied 6 years ago.

For some reason it seems like only a portion of the loan was secured by sba (60k)