Can SBA loans be discharged in bankruptcy?

In many cases SBA loans tied to personal guarantees may be discharged through personal Chapter 7 or Chapter 13 bankruptcy, depending on whether the debt is classified as consumer or business debt and the specific circumstances of the guarantee.

Can bankruptcy stop IRS wage garnishment?

Filing bankruptcy triggers an automatic stay under 11 U.S.C. § 362 that immediately stops most IRS collection activity, including wage garnishments, bank levies, and most tax liens — with some exceptions for ongoing tax obligations.

What is the Trust Fund Recovery Penalty?

The Trust Fund Recovery Penalty (TFRP) allows the IRS to hold responsible persons personally liable for unpaid payroll taxes withheld from employees. It can be assessed against owners, officers, and bookkeepers who had authority over payroll decisions.

What is a Merchant Cash Advance Confession of Judgment?

A confession of judgment (COJ) is a clause in some MCA agreements that allows the funder to obtain a court judgment against the business without filing a lawsuit. Texas courts have increasingly scrutinized COJs entered in other states against Texas businesses.

What is Subchapter V bankruptcy for small businesses?

Subchapter V is a streamlined Chapter 11 reorganization option for small businesses with less than $7.5 million in debt. It allows owners to retain equity without creditor approval, eliminates the creditors' committee, and uses a standing trustee to facilitate plan confirmation.