Discharging PPP or EIDL Loans in Bankruptcy

In this video, Josh Sternberg from Sternberg Law Group explains how COVID-related government loans, such as PPP loans and EIDL loans, are treated in bankruptcy. While PPP loans often had forgiveness, EIDL loans typically required repayment, leaving many borrowers struggling. Josh emphasizes that EIDL loans can be discharged in bankruptcy even if you signed a personal guarantee, as these loans were often issued through the Small Business Administration (SBA). He shares an example of a small business owner who discharged a $400,000 EIDL loan through Chapter 7 bankruptcy, protecting both her and her closed business. Josh highlights the importance of speaking to a bankruptcy attorney to evaluate your eligibility for bankruptcy based on factors like debt, income, and assets.

If you're struggling with COVID-related government loans, bankruptcy might offer a fresh start.