Is there any prohibition on discharging loans owed to SBA (Small Business Administration). SBA is a governmental entity
Posted: Tue May 06, 2008 5:07 pm
Kay,
I filed for an attorney a few years ago who had an SBA loan. He
insisted that he "read somewhere" that SBA loans were not
discharged. I insisted they were but he made me nervous so I called
an attorney I was dealing with at the SBA and asked her if SBA loans
were not discharged for some reason unknown to me and she laughed
and said, "Wouldn't that be nice. Yes, the loans are discharged."
>
> 050608
> Question for CDCBAA members, from KPMarch:
>
> Is there any prohibition on discharging loans owed to SBA (Small
Business
> Administration). SBA is a governmental entity, so loan is money
owed to a
> governmental entity, but not a tax, fine, restitution, etc.
>
> Have CDCBAA attorneys had any instances of SBA claiming that a
loan owed to
> SBA is nondischargeable for any reason? Have CDCBAA attorneys
scheduled and
> had SBA loans discharged without any problem?
>
> Past clients my firm had always had SECURED SBA loans.
>
> Now my firm has 2 different clients with UNSECURED SBA loans.
PS: If
> anyone knows of any relevant Code cite or caselaw, please REPLY to
tell me.
> I took a quick (10 minute) look on Westlaw, didn't see anything
definitive.
> Thx all.
>
> KPMarch
>
> Kathleen P. March, Esq.
> The Bankruptcy Law Firm, PC
> 10524 W. Pico Blvd, Suite 212
> Los Angeles, CA 90064
> Phone 310-559-9224
> Fax 310-559-9133
> Website: www.BKYLAWFIRM.com
> E-Mail: kmarch@...
> Have a former Bankruptcy Judge for your personal bankruptcy
attorney
>
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