Filing for bankruptcy protection can help you reinstate or stop the suspension of your California contractor’s license.
How a Judgment Can Result in Suspension of Your California Contractor License, and How to Prevent This
The government has a 6 year statute of limitations to file suit to collect an SBA loan. There is no time limit to collect on the SBA loan using the Treasury Offset Program.
Employer Owing $500,000 for Failing to Pay into an Employee Benefits Trust Fund Can Discharge that Debt in a Personal Bankruptcy
Whether you have to file for business or personal bankruptcy, will depend on the structure of your business and your personal liability for the debts.
In bankruptcy you can eliminate many types of business debts including SBA loans. Even though it is a government based loan it can still be discharged in bankruptcy.
Chapter 13 bankruptcy can help you to continue to operate your business while being protected from creditor action.
If your debts are primarily from business then you may be able to file for Chapter 7 bankruptcy and eliminate your business debts. The means test does not apply if your debts are primarily non-consumer debts.
You may be able to continue to operate and keep your business even after filing for bankruptcy. This will depend on the value of your business and where you file.