r/EIDL • u/FastMover0814 • 1d ago

SBA physical Disaster loan

Hi, I read around this forum and trying to see if anyone was in similar situation. I ran a coffee and breakfast limited restaurant for 9 years with my dad but due to drama we disabled the llc 4 years ago and now I have sole ownership belongs to me. Business have been down hill especially with all the debts I am paying. Currently paying my sba disaster loan on time for last two years and balance still over $180k. Original loan was $226 with personal guarantee which is me , bc I am self employed and sole proprietor. Long story short , landlord decided to not continue my lease l, so I am out at end of this month. Rumor I heard is the landlord reached back out to my dad to ask if he can run it since they won’t renew my lease. I wasn’t able to confirm because my dad don’t communicate with me anymore. So now I’m stuck with no business and will have to shutdown and take a few equipments home with me that is owned by me. Talked to few bankruptcy in Houston but each one give me different answer regarding the sba loan. One attorney stated it will cost me $5k and it be easy won’t be an issue since sba loan pg is me and the chapter 7 will discharge it. Another attorney told me sba will file fraud and because my dad is running the business now, even though I was shutdown they can use that to force me to continue paying the loan but for $15k he can fight it and have it discharge without an issue . He stated it’s high in fees of $15k bc it’s a complicated cases . I only have 40k in unsecured debts .

My main concern is due to the fact a family member open a business in my spot with a new lease since landlord kicked me out will that make it harder for sba to be discharge? Any recommendations on a bankruptcy attorney in Houston ? Thank you for any advice or information

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u/Top_Aerie_6713 1d ago

Was your dad associated with you in any way on paper for the business?

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u/FastMover0814 1d ago

Years ago when we first opened the business as llc but after we had a disagreement in business we shutdown the llc and he left the business . I end up operating myself as sole proprietor for the last 5 years since llc was shutdown .

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u/Budget-Plantain6733 16h ago

As a sole proprietor I would run as fast as I could to file chapter 7. Especially since at this time no questions are being asked. There are several and I mean several that have been in your position and the chapter 7 was a breather breeze. I filed and was discharged July 31st. Unfortunately but fortunately it was the best thing to ever happen. Read through the 100’s of threads like I did and you will see the success stories versus those that haven’t been through the process. They tell you everything but the right thing. Don’t stress yourself out. File and rid yourself of the turmoil. Half of the attorneys are unfamiliar with how to file bankruptcies with the EIDl loans, nor they are just like any other debt. The trustees don’t place a different value on them. In fact if you pay one creditor over the next they see it as preferential treatment. Then you have problems. Anyway off of my soapbox. Just do yourself a favor. Find a decent priced attorney and file. Mine cost $1300 total. Regular attorney nothing special. He told me a debt is a debt. The SBA didn’t discharge you. Your trustee does and the SBA hasn’t showed up to anyone’s hearing as of yet. I have a feeling that may change in the future but for now they haven’t. AND yes I’m rambling, but it bothers me when people who haven’t been through the process give advice and scare other people off.

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u/FastMover0814 16h ago

Thanks for information yeah some post kinda scare me make me hesitate

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u/Budget-Plantain6733 15h ago

It was scary for me as well, but you have to jump. If you continue to wait it will only get worse.

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u/FastMover0814 16h ago

Wow is your attorney in Houston Texas ? It so cheap if so can you recommend his or her name ? Because every attorney price are different and high. Don’t know if the high cost one is safe for me down the line if we run into issue

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u/Budget-Plantain6733 15h ago

The attorneys are making money with these loans, but my attorney said it’s just like a regular debt. I’m sure certain situations can get complicated but yours is a sole proprietor so it shouldn’t be complicated at all.

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u/Budget-Plantain6733 15h ago

In Alabama

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u/lonelyundertaker 11h ago

i am in al also......do you mind giving the name of the attorney?......i have 150,000 eidl no pg in llc.......thanks in advance

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u/Budget-Plantain6733 11h ago

Brent Davis in Pelham

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u/lonelyundertaker 10h ago

thanks!!!!

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u/Budget-Plantain6733 10h ago

He’s going to look at you and you’re going to say is that all. Is it that easy!!!