EIDL Loan: Utah Bankruptcy

EIDI Utah Loan

If you have received a COVID-19 Economic Injury Disaster Loan (EIDL) and then file for a Utah bankruptcy, the EIDL loan will be considered a debt that is subject to the Utah bankruptcy proceedings.

However, the treatment of the EIDL loan in a Utah bankruptcy will depend on several factors, including the type of Utah bankruptcy you file (Chapter 7 or Chapter 13), the amount of the loan, and the terms of the loan.

  • In a Utah Chapter 7 bankruptcy, any non-exempt assets will be liquidated to pay off creditors. If the EIDL loan is not paid in full from the sale of those assets, it may be discharged along with other unsecured debts.
  • In a Utah Chapter 13 bankruptcy, the EIDL loan will be included in your repayment plan. You will be required to repay the loan through the plan over the course of three to five years.

It’s important to note that bankruptcy laws are complex and vary by state, so it’s a good idea to consult with a bankruptcy attorney who can advise you on the specific rules and requirements in your state.

Additionally, it’s important to review the terms of your EIDL loan agreement to understand your obligations and any potential consequences of defaulting on the loan.

If you are located in Utah and want to discuss your Utah bankruptcy options contact the Utah Bankruptcy Guy team.

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