SBA Loan Default: Is bankruptcy an option
by danisej, Window Shopper
- Created: December 11, 2009, 3:20 pm
- Updated: March 18, 2013, 1:42 pm
I am a co-signer on my future ex's loan with the SBA for rental property repair. The properties were purchased before we got married and I signed because I was told that the loan could not be approved without me on it. Now, he is in foreclosure on the properties and is not paying the SBA. I am floored. We are currently separated and the divorce is in process. I spoke to the SBA and they advised that the Treasury can now take my taxes every time I file (and his). They are currently waiting to see if the foreclosure sale will go through with Bank of America. My only option is to file bankruptcy to stop them from taking my taxes, but I am also concerned about whether I can get this loan discharged in a bankruptcy? I know a student loan is not dischargeable, but is the SBA loan? I have been getting mixed answers and I want to scream. Mind you, he put his properties up as collateral but I have nothing up for collateral. I just don't know what to do or how to think. Anybody been here before or know something that might be of help? I just want my life back and feel like I made the worst mistake of it.
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