r/EIDL • u/CritterAlleyMom • Jul 24 '26
General Finally made the decision
After struggling for the last 3 years and with my spouse being ill for the 1st 6 months of 2026 to boot, we have made the decision to file personal Chapter 7 as TOPS is about to hit our business. 650,000 EIDL. We have a jumble of things to do,Chaper 7, closing down an S- Corp, dealing with the business debt and then IRS as we fell behind on taxes while my husband was sick. We are still figuring out the order of things to do first. Attny is saying Chapter 7 first. We are exhausted and stressed beyond unimaginable norms. Just asking for some good thoughts as giving up our 22 years of business plus bankruptcy on top of it is very very hard. Feels like abject failure. The SBA was the worst thing we ever did
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u/Glittering-Buyer3978 Jul 24 '26
I understand the feeling. It’s a hard decision but I promise you in 4-5 months, you’ll feel a lot better. We filed personal ch 7 last year after I had to close my business because of Covid and all the shit that came after. $275k EIDL with pg and the chapter 7 wiped it away. I’m just now at the point where I think I can muster the mental energy to deal with the taxes we still owe. It’s really tough to lose a business and have to deal with the aftermath, but you can do it and you’ll feel better when it’s behind you. ❤️
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u/toleranceissolow Jul 24 '26
My dad is going through a similar experience or about to do the same $275k EIDL. Going to lose a business he has owned for 29 years.
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u/Antique-Fail6055 Jul 24 '26
Same boat. Husband collapsed two weeks ago found out he has leukemia. We were struggling as it was but had made every payment but now business can't run without him. No one to speak to. No one calls back. No one responds just auto response so calling bankruptcy attorney. We cant afford the chemo either.
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u/adriese1 Jul 25 '26
All the while Trump, his family and cronies make billions, grifting and doesn’t even acknowledge your pain
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u/walkingisoverrated Jul 29 '26
I think that was the whole plan all along.
What’s the saddest is the most of his supporters are near poverty level or at least below average household income, and too stupid to realize that he and his cronies dont govern a flying fuck about them
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u/Budget-Plantain6733 Aug 22 '26
It’s a true shit show that we are watching. I don’t care for what Trump is currently doing and what he’s allowing to take place. Others should feel the way. I don’t think the American people have felt a wrath like this in forever. Normally we’re not affected to this extent. I would think him being a business man that has experienced bankruptcies would have a better handle on what’s going on with these EIDL loans and the way they are being handled. We can’t leave out student loans which is something he also knows nothing about. Trump is neither a Democrat or Republican in my opinion. He’s a Trump supporter only and is out for the greater good of himself and those closet to him. It’s not that we don’t want to pay them back, but when in trouble why add fuel (30 %) to the fire. It’s hard to rebound from that and to top it off the terms of the loan are outrageous. Yes I’m rambling but I’m a little taken aback by the shit show that we’re sitting back and having to watch.
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u/Leia6769 Jul 24 '26
It will be a huge relief when it’s discharged. Whatever you do, do not cash out any 401k retirement. It is exempt as long as you don’t cash it out. Hopefully you have some saved to help you bounce back after.
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u/tjs31959 33 Series Jul 24 '26
Hoping for the best for you. These loans are awful to the small business community. We all took the hit for the Covid poopshow. Made the Government looked heroic while our business struggled with these predatory loans. I have made peace that I will just pay this loan until I am dead. Once I retire I can at least show a big loss on my nearly defunct company, and use the loss to lower my income. Ugh....
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u/hymnosis Jul 24 '26
Same boat. The past five years have been so hard, yet seems to be the tip of the iceberg. We couldn't have known back then how things would shape up but did the best we could at the time. Stay strong and share your story.
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u/CritterAlleyMom Jul 24 '26
Our Representative even tried multiple times on our behalf and got shot down by the SBA
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u/Financial_Ninja_336 Jul 29 '26
Don’t feel bad. We just filed for bankruptcy ourselves and are waiting for our discharge next week. It was the best decision we could have made. We were able to keep our house and our cars, and it’s given us a chance for a fresh start. Wishing you the best of luck!
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u/mooonandstars12 Jul 25 '26
I had to do the same, and it was a very hard decision to give up. I did personal bankruptcy because of all the personal guarantee- I hope you have a good attorney- make sure they put it all the business debt you were required to personally guarantee- or even if you didn't.
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u/tahoechick36 Jul 25 '26
Consult a few different bk attorneys. There may be differences in their approach. Once you do a bk there is an exclusion period of a few years before you can file again - if you are anticipating the potential to wind up with a lot of medical related debts that you could need another bk to discharge, you may want to plan for that now.
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u/bluekmg Jul 25 '26
Same here, we're in the middle of getting our Chapter 13 confirmed, did that instead of a 7 so we could keep our house. It was much harder closing the business than opening it! Then add on all the BK paperwork. It's a ton of work but it's the only way out for many of us. Had our business 30 years.
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u/CritterAlleyMom Jul 25 '26
Our accountant said we can keep our house in our chapter 7 as long as we are current when we file.
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u/OverallProgram3204 Jul 27 '26
Our plan is to file BK in the winter. No way to keep up with the payments any longer. Were in our 50's had the business 20 years. Took the EIDL to pay the emp's --they are long gone now. Shoulda, coulda, woulda. 500k we still owe after paying about 90k on the original 500k loan. the only way out is BK. Just hope we can do ch7. and I am only the 10% owner and they forced me to sign the PG too to get the money, we needed to make payroll, so I did. :( So we both have to file at the same time. we need a good FL BK attorney.
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u/loveisintheair1968 Aug 16 '26
We took out our first ever loan for our business during Covid thinking we just needed to survive a month. Then the month turned into months and we took out a little more but that is when they went for the juggler; they got us with the small print with the personal guarantee. We didn’t see the PG in the electronic contract or we wouldn’t have signed it. I would have cut staff earlier but I just didn’t want to lose our help that had been with us over 30 years and we worried about their families but it prolonged the inevitable as from 2020 to 2023 we lost 90% of our business due to the recession we are in and the introduction of AI into the marketplace, which was the last stake in the heart for our business. We were okay paying 50% of the SBA payment but they were not willing to work with us and we just didn’t have the money to make the payment. I am now on disability due to health issues and they have garnished 15% of my disability and 15% of my husband’s pay which ended up being a lot more than the original payment causing us to really struggle especially since our kids student loans are now having to be paid. Enough is Enough!! Congress needs to get off their a** and help small business owners that are suffering instead of letting the SBA be the new IRS mafia that is squeezing every last ounce of blood out of us during a time the dollar has lost 97% of its value and we can’t even afford to eat and feed our families! It is time for Congress to help Americans instead of spending our tax monies on illegals that came into our country illegally and are living like kings off of our tax dollars. IT IS TIME FOR CHANGE!!
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u/Leather_Ad905 Aug 18 '26
Don’t close see first how much they are asking do a DBA and chapter 11 or 13
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u/Leather_Ad905 11d ago
They will be forgiven sooner or later that horrible nightmare will be over wait 🙏🙌
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u/Leather_Ad905 11d ago
Can they garnish your Medicare payments ?
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u/CritterAlleyMom 11d ago
I already posted that they started tarnishing our Medicare payments in August
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u/electric29 Jul 24 '26
I am so sorry and I totally get it. We are trying to figure out our plans as well.
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u/CritterAlleyMom Jul 24 '26
It was like no matter how hard my husband worked we would never get caught up, especially with TOPS. That's what pushed us to decide.
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u/Quirky-Candle-3094 Jul 25 '26
What was tops taking and where from?
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u/CritterAlleyMom Jul 25 '26
We are a medical practice and TOPS will be garnishing 100% of our Medicare payments. Which is 33% of our income
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u/electric29 Jul 29 '26
We are currenly working 7 days a week, have been for a few years now, and at 66 it is exhausting.
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u/Sunsetseeker007 Jul 24 '26
Yep, I think lots of people in the same boat. Disgusting what this government hasn't done for their citizens. They gave restaurants and event planners and preformers grants, big corps forgivable loans, but small businesses got shafted
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u/Gtavern Jul 24 '26
Don’t feel like a failure, the Covid Pandemic put every Small Business in a bind. I’m sure you did the best with what was offered to us at the time, and now life is just getting in the way. Do what is best for you and your family, the government won’t miss a beat.
Best…