Can SBA Loans Be Discharged in Chapter 7 Bankruptcy? YES.
May 16, 2025OUTCOME: Total Debt Erased: $2.6 Million
Can SBA Loans Be Discharged in Chapter 7 Bankruptcy? YES. In a recent case I filed for a local doctor, we proved it. Filed: January 8, 2025 Discharged: April 15, 2025 Time to complete: Just 97 ... days Total Debt Erased: $2.6 Million This included a substantial SBA loan, which many assume is not dischargeable. But here’s the truth: Chapter 7 bankruptcy eliminates personal liability on SBA loans, just like other unsecured debts. We didn’t stop there. The doctor’s home had over $400,000 in equity, and multiple judgment creditors had recorded liens. To fully protect her fresh start, I filed Motions to Avoid Judicial Liens—an essential but often overlooked step in high-asset bankruptcies. Those liens were stripped, preserving her home’s equity and clearing the title. Bankruptcy isn’t just about wiping out credit cards. It’s a powerful legal tool that can restore lives—even in complex, high-stakes cases like this. I break it all down in this quick 60-second video hashtag#BankruptcyLaw hashtag#SBALoan hashtag#Chapter7 hashtag#DebtRelief hashtag#LienAvoidance hashtag#FreshStart hashtag#PhiladelphiaAttorney hashtag#MedicalProfessionals
