EIDL in Your Plan
EIDL debt is treated as general unsecured. You pay a percentage (potentially 0-100%) over 3-5 years based on disposable income. The unpaid balance is discharged at completion.
Secured vs. Unsecured Claims
If the SBA has a lien on specific property, the secured portion must be paid in full. The unsecured portion (amount exceeding collateral value) is paid at the general unsecured rate.
Keeping Your Business
Chapter 13 allows continued operation while repaying under court supervision. The automatic stay stops all SBA collection during the case.
Frequently Asked Questions
Can I reduce my EIDL payment?
Yes. Your plan payment is based on disposable income, not debt amount. You may pay only 5-10% of unsecured debts.
How long is the plan?
3 years if income is below state median, 5 years if above.
What if my business fails during Chapter 13?
You can convert to Chapter 7, seek a hardship discharge, or modify your plan.
Check your bankruptcy discharge eligibility with our free screening tool.
Free Discharge Screener