Small Business Owners are Entitled to Exempt Reasonable Compensation from the Bankruptcy Estate
ABI
JANUARY 22, 2023
Rachel McGarry St. John's University School of Law American Bankruptcy Institute Law Review Staff In In re Raza, a bankruptcy court in Virginia overruled a trustee’s objection to certain of the debtor’s claimed exemptions and held that a small business owner who received an Economic Injury Disaster Loan (“EIDL Loan”) with the U.S. Small Business Administration (“SBA”) was able to use those funds as reasonable earnings for himself, “which in turn may be exempted from the bankruptcy estate.
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