Ok My last question and comment on this issue!
Owner Borrower A of house is sole owner of property worth lets pretend for this example
Zillow says property worth $600,000
Debts are ($ 640,000)
Bank A still has a lean on property for -SBA's $250,000-
SBA as a creditor for the same ($250,000)
other creditors are owed ($ 20,000)
Bank B ---LOC --second mortgage ( $50,000 )
1st Mortgage owed ($320,000)
Borrower B married to Borrower A
not on title or mortgage but on SBA loan
Borrower A ---discharged all monies owed personally above in bankruptcy and all creditors are informed but no one shows up or claims debt so all discharged.
Cant or shouldn't the Bankruptcy lawyer force the Bank A to remove lean or reduce it to what they didn't get paid back from SBA ?
but SBA still going after Borrower B not bankrupt yet!!
Once Borrower B goes bankrupt and gets all discharged
What happens to SBA loan ?