A client has an failed LLC. He’s personally liable for a $250,000 SBA Loan that he took out for the LLC. He wants to declare ch 7. After taking his information, he does qualify. I am going to include the SBA loan in the bankruptcy and from what I’ve researched, this debt is dischargeable. The SBA loan is attached to some equipment remaining in the LLC that is valued about $25,000 but the debtor doesn’t care if they take it, the trustee takes etc. We have filed bankruptcy cases for many people with sba loans and it has never been a problem. They only have to file because the sba makes them give a personal guarantee on the debt.