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About Mark J. Markus- California Bankruptcy Attorney
Expertise
Mark J. Markus is a Los Angeles attorney who has practiced exclusively bankruptcy law in California since 1991 and is rated A+ by the Better Business Bureau. He represents debtors, creditors, and Trustees in Chapter 7, Chapter 11, and Chapter 13 of the bankruptcy code throughout California.
Experience
Visit http://www.bklaw.com for more information on bankruptcy in general and Mark J. Markus in particular. Many questions are answered on the web page (hint, hint).
The Markus webpage also contains more information on business bankruptcy,
chapter 7 bankruptcy,
chapter 11 bankruptcy,
chapter 13 bankruptcy,
Frequently Asked Bankruptcy Questions
Also visit our new bankruptcy blog for interesting articles and much more.
Education/Credentials
J.D., University of Arizona 1990. B.A. Economics, California State University, Northridge 1986. For more details please click here
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You are here: Experts > Business > Corporate Law > Bankruptcy Law > chapter 7
Expert: Mark J. Markus- California Bankruptcy Attorney - 10/24/2009
Question
I have a business that I'm trying to sell. If I cannot sell, I will need to do a chapter 7, which I have already qualified for. The question is, the bank has a lean on my home when I got the SBA loan. Can or will the bank or SBA go after me in a Chapter 7. I would be doing a chapter 7 for business and personal. Also, can there be a short sale with a business. The business does bring in money. My sales are about $150,000. My SBA loan is $125,000.
Answer
Is your "business" a corporation or partnership, or is it just you as a sole proprietorship?
You separate the "bank" from the SBA. Are those two different loans?
If the "business" defaults on the payment, then the SBA can go after you for the debt you owe on what I assume is a personal guarantee. The lien on your home will remain after you file a personal chapter 7 case, so they will be able to be paid from any sale or refinance of that property (assuming there is equity).
As far as filing a chapter 7 for the business (and assuming it is a separate corporation), please visit http://www.bklaw.com/business_bankruptcy.html for more information on that option.
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