Can I file bankruptcy?: $780k sba eidl loan originally, now its 1.1 million with interest and 30%collections charges. I dont have bank statements for the business. Business was a restaurant shut down in 2023. And honestly I used my business bank account for both personal and business expenses. So most od eidl probably was used for expenses like buying stocks which ultimately lost in value by alot. I have receipts from wholesalers for the restaurant and tax returns showing losses for 2020-2023 all of covid. I also have $300k of personal credit card and car loan debt. I own a house in contra costa county worth $730k, its paid off. I paid off the house before covid. I havent worked since my restaurant shut down. I have been living off saving and now saving are drying up. I have $15k left and a car loan that I am current on. I have 2 small kids and my kids mother who all live with me and I support. She does not work. I want to file chapter 7 bankruptcy and want a life reset , but without sba asking me what I did with the money. I dont want to open up another problem if there is any.
Michael’s answer: It sounds like you need a bankruptcy. I agree with attorney Mann, I have not seen the SBA participating in bankruptcy cases or questioning people about the use of funds for a couple years. The key to bankruptcy is to review things in detail before filing. Hope this helps.
Can the ER, tow yard, and ambulance bill after a car accident be non-consumer debt in bankruptcy?: I didn’t elect to be taken to the hospital I was taken there because I was hurt and my car was destroyed in the impact. I would also use the subrogation bill as non consumer debt as well.
Michael’s answer: Most medical debts are non-consumer debt. Elective surgery is different. So, your ER bill, tow yard, and ambulance would be non-consumer debt.
Can I file bankruptcy if I owe IRS and I owe money on a loan from a bank?: Financial hardship. I filed taxes 4 years
Michael’s answer: Yes, you can. Bankruptcy can forgive most debts but there are special rules about having taxes forgiven though.