can a SBA disaster loan be discharged?

[clo]

If someone was a victim of a national disaster and gets an SBA loan where they actually sent payments to SBA instead of a thrid party lender.

They were late on a payment a few times but always made it up. Then SBA turned it over to the US Department if Treasury. The Treasury dept sent it to a private collection agency. This is an unsecured disaster loan.

If the person files CH7. BK can this loan be discharged?

[MSbklawyer]

Yes. It can be discharged just like any other general unsecured debt. It's one of the few places where the government as creditor is not given preferential status.