PPP loans or paycheck protection program loans can help you make it through, but what about in cases of bankruptcy? Making the most of any situation can help you not only get through but can also help you get out on the other side in better shape. Learn about the PPP loan forgiveness requirements. When it comes to living through a pandemic as we currently are, money can get tight, and it can be difficult for many to pay off loans, take care of monthly payments, and survive honestly.

1. ARE PPP LOANS
DISCHARGEABLE
IN BANKRUPTCY
ALL ABPOUT PPP LOANS
NATHAN A BERNEMAN

2. WHEN IT COMES TO LIVING
THROUGH A PANDEMIC AS WE
CURRENTLY ARE, MONEY CAN
GET TIGHT AND IT CAN BE
DIFFICULT FOR MANY TO PAY
OFF LOANS, TAKE CARE OF
MONTHLY PAYMENTS, AND
JUST SURVIVE HONESTLY.
PPP LOANS, OR PAYCHECK
PROTECTION PROGRAM
LOANS CAN HELP YOU MAKE
IT THROUGH, BUT WHAT
ABOUT IN CASES
OF BANKRUPTCY?
ALL ABPOUT PPP LAONS
NATHAN A BERNEMAN

3. A PPP LOAN IS DESIGNED TO HELP
SMALL BUSINESSES IN TIMES OF
CRISIS, THE PANDEMIC WE ARE
LIVING THROUGH IS A PERFECT
EXAMPLE.
PPP
Loans During Bankruptcy
THIS TYPE OF LOAN IS MEANT TO
PROVIDE THE EMPLOYER WITH
FUNDS TO KEEP EMPLOYEES
WORKING AND TO KEEP THEM ON
THE PAYROLL.
PPP LOANS ARE DISTRIBUTED BY
THE SMALL BUSINESS ASSOCIATION
AND THEY CAN BE FORGIVEN IN
FULL IF THE BORROWER MEETS
THE CRITERIA FOR KEEPING THEIR
EMPLOYEES EMPLOYED AND PAID.

4. THESE LOANS ARE ALSO
FREQUENTLY REFERRED TO AS
PAYCHECK PROTECTION PROGRAM
LOANS OR PPP LOAN AND THEY ARE
CRUCIAL FOR SMALL BUSINESSES
THAT ARE FACING HARDSHIP AND
THAT MAY NOT BE ABLE TO BE
OPEN TO CREATE FUNDS
NECESSARY TO PAY THEIR
EMPLOYEES.
IF YOU ARE UNABLE TO KEEP YOUR
EMPLOYEES AND HAVE TO CLOSE
THE BUSINESS, YOU WILL HAVE TO
PAY THE LOAN IN FULL AND WILL
HAVE TO PAY THE LOAN BACK EVEN
THOUGH YOU MAY NOT BE
WORKING AND MAY HAVE NO
INCOME.
IN TIMES OF EXTRA STRIFE OR WHEN
THE BUSINESS OWNER HAS TO CLOSE
THE ESTABLISHMENT AND THEREFORE
CANNOT SATISFY THE EMPLOYMENT
REQUIREMENTS TO HAVE THE LOAN
FORGIVEN THROUGH THE SMALL
BUSINESS ADMINISTRATION, THE LOAN
CAN OFTEN BE DISCHARGED
DURING BANKRUPTCY.

5. THE SHORT ANSWER IS
YES. DISCHARGEABLE IN TERMS
OF BANKRUPTCY MEANS THAT THE
DEBTOR OR THE PERSON THAT TOOK
OUT THE LOAN IS NO LONGER
REQUIRED TO PAY THE REMAINDER OF
THE BALANCE BECAUSE IT WAS
DISMISSED
DURING BANKRUPTCY PROCEEDINGS.
THIS ALSO MEANS THAT THE PERSON
THAT IS FILING CAN ESSENTIALLY CUT
TIES WITH THAT LENDER AND THAT
THEY HAVE NO LEGAL RESPONSIBILITY
TO PAY THE LOAN OFF.
Is My PPP
Loan Dischargeable During
Bankruptcy?
THIS TYPE OF LOAN
IS DISCHARGEABLE (PPP LOANS)
BECAUSE IT DOES NOT FALL INTO A
SPECIFIC CATEGORY. THERE ARE SOME
LOAN AND DEBT TYPES THAT CANNOT
BE DISMISSED IN BANKRUPTCY FILINGS.

6. THEY ARE AS FOLLOWS: LOANS THAT
ARE NOT LISTED IN THE PROCEEDINGS,
TAXES, CHILD SUPPORT PAYMENTS OR
ALIMONY, FINES THAT YOU OWE TO THE
GOVERNMENT EITHER LOCAL OR
FEDERAL, PERSONAL INJURY DEBTS
THAT ARE YOUR FAULT, STUDENT
LOANS, ATTORNEY FEES, AND CRIMINAL
RESTITUTION.
Is My PPP
Loan Dischargeable During
Bankruptcy?
YOUR LAWYER IN
YOUR BANKRUPTCY PROCEEDINGS CAN
BETTER ILLUSTRATE WHAT LOAN TYPES
ARE NOT FORGIVEN AND CAN HELP YOU
TO DETERMINE WHAT LOANS YOU CAN
APPLY TO YOUR BANKRUPTCY AND
WHAT LOANS YOU HAVE TO REAFFIRM
AND THEN PAY LATER.

7. SOME PPP LOANS CAN BE FORGIVEN IF
THE BORROWER MEETS SPECIFIC
CONDITIONS ASSOCIATED WITH THE
LOAN.
Loan Forgiveness Terms
of PPP Loans
THE FIRST IS IF THE LOAN WAS USED
FOR AUTHORIZED OR APPROVED
EXPENSES LIKE PAYING THE PAYROLL
OF EMPLOYEES TO RETAIN THEM, USING
THE LOAN TO PAY FOR BUSINESS
RELATED EXPENSES, OR MAKING SURE
THAT THE LOAN WAS USED TO HELP
KEEP YOUR BUSINESS AFLOAT.
IF YOU MEET THESE REQUIREMENTS
AND HAVE DOCUMENTATION TO
SUPPORT THE FACT THAT THE FUNDS
WERE USED FOR APPROPRIATE
EXPENSES, YOU CAN APPLY TO HAVE
THE LOAN FORGIVEN AND IN MANY
CASES, YOU CAN HAVE THE PORTION
THAT WAS USED TO PAY YOUR
EMPLOYEES OR TO PAY BUSINESS
EXPENSES FORGIVEN.

8. IF THIS IS NOT THE ENTIRE
LOAN BALANCE, YOU CAN
THEN FILL OUT
YOUR BANKRUPTCY TO HAVE
THE REMAINING PORTION OF
THE LOAN DISCHARGED
IN BANKRUPTCY.
Loan Forgiveness Terms
of PPP Loans

9. A PPP LOAN DOES NOT REQUIRE ANY
COLLATERAL FOR THE BORROWER TO
BE APPROVED BUT THIS DOES NOT
MEAN THAT THE SMALL BUSINESS
ASSOCIATION CANNOT COME BACK
AGAINST YOU FOR SECURED DEBT.
What Collateral is Required
For Your Loan Approval?
AN EIDL LOAN DOES REQUIRE SOME
COLLATERAL TO BE APPROVED.
WITH AN EIDL LOAN YOU NEED TO
PROVIDE COLLATERAL FOR LOANS
THAT ARE ABOVE $25,000.
IN MOST CASES COLLATERAL IS THING
LIKE THE EQUIPMENT THAT YOU USE IN
THE BUSINESS TO KEEP IT RUNNING.
WITH A PPP LOAN YOU ARE NOT GOING
TO HAVE TO PUT UP ANY COLLATERAL
BUT YOU ARE GOING TO BE A BIT MORE
LIMITED IN THE AMOUNT OF MONEY
THAT YOU CAN GET TO CARE FOR YOUR
BUSINESS AND TO PAY OFF YOUR DEBTS.

10. With the help of a great lawyer or law
firm you can get through
your bankruptcy and come out on the
other side better for the experience.
Phone: 805.492.7045
Toll Free: 877-620-0044
(Outside Ventura County)
https://www.bernemanlawfirm.com/