u/EducationalBee1191

We received an SBA 7 a loan through Huntington Bank. We filled out the forms with a loan officer there and what we wanted to use it for she said they would never approve and she told us how to change the application in order to pass it through underwriting. When the economy tanked, so did our business and we have defaulted on the loan. They said they were sending it back to the treasury. We haven’t heard anything in many months, but I assume it’s coming.

I’m not even totally sure what I’m asking other than what to expect and is it common for loan officers to tell you to do something like that?

I am looking to file bankruptcy with my husband and it is a bit daunting. As I said, we have a sole proprietorship LLC and got the SBA 7A personal guarantee loan for $95,000. There are no assets left, we don’t even own a house anymore and our cars don’t have any equity. Our business has completely tanked during this economic downturn and we are just absolutely underwater.

I guess I am looking for ideas on what to expect and if this seems like chapter 7 would be a viable option. I have no income right now as I am switching industries and my husband just took a job but as a family of five, we are definitely under the poverty line right now.

Edited to add: we are in Michigan