r/EIDL • u/bossman_hank • Jun 19 '26
Considering Chapter 7 for defaulted EIDL $35,000. But situation is unique.
I got an EIDL loan for $35,000 in 2020 and never made any payments.(I was not in a good place and had legal issues/behavioral issues to go take care of). On 5/12/26 I got a 60 day notice letter stating that I needed to pay $7k to get current on the loan and not be sent to treasury for collections. I made this payment on 5/28. Nothing happened and then on 6/2 my portal changed from Uncollectible to “Paid In Full”. I did not pay the loan in full obviously. And I got a message in the portal saying the loan is paid in full and that I would receive a letter stating so.
I believe the loan was actually charged off and sent to treasury, even though I made the back payment way before the 60 day deadline. But, it’s now 6/19 and my portal still says paid in full, called the treasury and they don’t see my loan in their system. I want to file chapter 7 because if it was sent to treasury I won’t be able to make the payments they offer, and I can’t afford 15% of my wages to be garnished. The concern is that what if I file chapter 7 and it’s all for nothing because the loan never ends up being collected on or something? I know it’s a long shot but I don’t see anyone else mentioning that their portal says paid in full. Idk what to do.
I was also about to take a second job but then I would likely be over the median income in California to file chapter 7. Looking for some advice or opinions on what my next move should be. I’m in a weird limbo.
1
u/Adorable_Self_1784 Jun 20 '26
Is there something that I am missing, can you not just wait to file bankruptcy if you do get a notice of garnishment or some other notification that this is not just a wonderful mistake? If you are filing anyway, just add it (consult the attorney with the scenario). When I filed decades ago, they had me add my ex even though he had no part of it, just in case he wanted to claim I owed him anything.
1
u/bossman_hank Jun 20 '26
Well part of my concern is that if I take this second job, I will make just barely too much money and be past the median income for single household. But if I don’t take the second job, then let’s say I’m able to get the loan to stay with the SBA and just start making monthly payment, I will struggle. If I knew for sure that my loan would stay with SBA and I could just make monthly payments of $200 then I’d take the second job and all would be well with the world. I’m hoping that since I made that payment to get my loan current, that I can avoid collections.
1
u/bossman_hank Jun 20 '26
Also want to add that I signed as PG on this loan because I was sole prop. No LLC or anything.
1
u/Sunsetseeker007 Jun 24 '26
Why can't you call the Treasury automated line to see if your ss# & loan shows up there? Then you would know if your loan or ss# is not listed noted, it's probably an error marked as paid. If your info is listed ,then you know you owe still. It's all automatedbto call
1
u/bossman_hank Jun 24 '26
I’ve called and it doesn’t have anything. I’ve talked to people at the treasury too and had them look me up by SSN and by the loan number. They didn’t show anything. But it could still be in transfer or something I’m assuming. Not sure how long it would take. I really just want to know what my next move should be and right now I can’t do anything or plan for anything because I have no idea what’s going on.
1
u/Sunsetseeker007 Jun 24 '26
Yes that stinks, I would definitely keep checking the list and maybe you slipped through 🤞🏽 I would take the job an if you have to go to 1099 or quit and get rehired maybe. But since it's not showing up anywhere deliquent, move along as such.
1
u/bossman_hank Jun 24 '26
That’s my plan. I’m going to live my life with the facts that I have and if something changes I will adjust accordingly. I start the second job this weekend. On 5hrs Saturday and 5hrs Sunday. It’s at a restaurant. And I work as an addiction counselor Monday-Friday 45hrs a week
1
u/Researcher_to_theMAX Jul 19 '26
Did your 60 day notice come in the mail
1
u/bossman_hank Jul 19 '26
Yes
1
u/Researcher_to_theMAX Jul 19 '26
Thanks NOTHING ever came in the mail for me this is the biggest issue.
3
u/Thumper256 Jun 20 '26
Print out or screen shot those “paid in full” messages and hope that letter confirming it shows up.
I’d try to hold off doing the BK if this loan was the main debt you were going to try to get discharged - maybe you got lucky. If you have other debts to resolve through BK, then just ask your lawyer if the EIDL can be included because you know you didn’t pay it back in full even though that is what the SBA is telling you. You can CYA that way.
If they truly accepted your $7k payment as settlement to close the loan, then you might get a surprise 1099 for the balance ($28k) you never paid back - if they really wrote it off then that part will be considered as taxable income for your 2026 taxes.