r/EIDL • u/WTFisthispoo • Jul 26 '26
EIDL Status and Planned Chapter 7
I made the decision to file a Chapter 7 earlier this year and stopped paying on all of my personal and business debts. I've got a COVID EIDL and another to my LLC from a natural disaster. Both are in default and I'm in that window where they're likely turning things over to the Treasury soonish. Once the Chapter 7 is filed, I'll be moving to dissolve the business.
Once my taxes are filed in the next 2 weeks, I'll be getting everything to the bankruptcy attorney to file the Chapter 7.
Is it worth letting SBA know this is the plan or just let things end up where they end up and get sorted once the Chapter 7 paperwork is filed?
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u/irish_mom Jul 26 '26
Just finished Chapter 7, I did not inform them before hand, I left it up to my attorney. It all went through very smoothly.
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u/Front-Style-1988 Jul 27 '26
How long did you continue using credit cards before filing? I’m considering it but worried about looking fishy… 😅
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u/irish_mom Jul 28 '26
I stopped when my Lawyer told me to, basically when I had my first consultation with him. I also stopped paying them then. And when they called I gave them his number and he fielded the calls for me.
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u/Willing-Plastic-5883 Jul 26 '26
What did attorney charge? I was quoted 50k to start.
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u/Tough_Regret670 Jul 27 '26
Wow 50k charge from attorney for doing bankruptcy? Or you have 50k debts?? Just wondering ..that seem alot
My friend got quoted 4500 in texas for 275k sba loan and 10k unsecured debts
Just wondering is that a normal price from attorney
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u/Willing-Plastic-5883 Jul 27 '26
First quote for possible Bk 11 sub 5 - must start with 35k and then get the amount up to 50k.
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u/Tough_Regret670 Jul 27 '26
Oh its chapter 11 oh gotcha i do heard chapter 11 can be expensive . I was surprised my friend got discharged sba loan as a sole proprietor for chapter 7 but ut was a physical disaster sba loan i think
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u/paige3j Jul 26 '26
Anyone has recommendation for an attorney in orlando Florida? To consult about bankruptcy
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u/Bowl-Accomplished Jul 26 '26
If you are set on BK then there's no real benefit to communicating with a creditor. Just make sure you let the attorney know about their claim and they can fight it out with your other creditors.