In general, yes. By filing for personal bankruptcy, it is possible to sever the personal liability that flows from the SBA loan. However, if you put up security for the SBA loan – such as your home as collateral – that liens will still survive the bankruptcy. It may be possible to “strip” the SBA loan lien in such a circumstance. This is a very complicated issue and you should consult with your San Francisco bankruptcy attorney to discuss your particular circumstance.

Posted in: Business Bankruptcy FAQ