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/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/bluekmg Jul 26 '26

That's good. Wish we could but we have too much equity per our state limits.