Out of debt except for one loan
Terry, after years of debt, we sold our home, moved into a less expensive 55+ community, and used the profit to erase all our debt except for an SBA loan I took out when my business tanked during the pandemic. It is a Disaster COVID-19 Economic Injury loan they say is not forgivable. I pay twice the amount due every month, but with $28k still due, it’s becoming increasingly difficult on a tight retirement budget. Do you have any idea how I can get out from under this financial burden? Thank you.
Terry Says
So I did a little research. A lot depends on how you “secured” the loan. If it was secured by business property, you would have to surrender the collateral — the truck or office furniture, or receivables.
But if you guaranteed personally, the only way out may be a bankruptcy.
Before you do any of that, contact the National Foundation for Credit Counseling at 800-388-2227. This will connect you to the nearest local office of this trusted non-profit agency. Make sure you ask if they have someone familiar with EIDL loan provisions. They may refer you to a bankruptcy attorney so you could discharge your personal obligation, or they may be able to negotiate with the government.
Please write back and let me know what happens.
