SBA EIDL Default Attorney in Chicago, Illinois

Eric Zelazny is a Chicago bankruptcy attorney with a CPA background — bringing over 20 years of experience helping Illinois business owners navigate SBA EIDL defaults and protect their personal assets from SBA collection.

Is your SBA EIDL in default — or heading there?

An EIDL default occurs when a borrower fails to meet repayment obligations on a COVID-era Economic Injury Disaster Loan issued by the SBA. For loans exceeding $200,000, business owners signed a personal guarantee — meaning personal assets including homes, savings, and retirement accounts are exposed to collection. The SBA services EIDL through its own portal and has broad collection authority including Treasury offsets and Department of Justice referrals. Illinois business owners in EIDL default have options including the SBA Hardship Accommodation Program, Offer in Compromise, and bankruptcy protection — each with different eligibility requirements and timelines.

The Economic Injury Disaster Loan (EIDL) program put billions of dollars into the hands of small business owners who needed it most. Now, many of those same business owners are facing a harsh reality: repayment terms they can no longer meet, loans in default, and the SBA coming to collect.

What makes EIDL defaults especially dangerous is the personal guarantee. For loans over $200,000, you signed personally — meaning your home, your savings, and your personal assets are on the line, not just your business.

The SBA is not a typical lender. They have collection tools most creditors don’t — including Treasury offsets, wage garnishment, and referral to the Department of Justice. Time matters here.

You're Not the First. Here's How We've Helped Our Clients

An Illinois restaurant owner took a $500,000 SBA EIDL during COVID to keep operations running. When the business became unviable two years later, the SBA began collection proceedings against her personally under the loan’s personal guarantee. Eric evaluated her full financial picture — including her personal assets and tax situation — and negotiated a structured resolution with the SBA that avoided bankruptcy and protected her primary residence.

Why Illinois business owners trust Eric Zelazny with their EIDL situation

Eric Zelazny is both a licensed Attorney with CPA credentials,— a combination that is rare and genuinely valuable when dealing with SBA EIDL. The EIDL default process involves legal exposure, tax implications, and financial strategy all at once. Most attorneys only handle one piece. Eric handles all of it.

He has helped business owners across the Chicago area evaluate every available option — from hardship programs to full bankruptcy protection — and build a strategy tailored to their specific situation.

EIDL Recovery Options We Help Business Owners Explore

SBA Hardship Accommodation Program

If your business is still operating but struggling to make payments, the SBA's Hardship Accommodation Program may allow you to temporarily reduce your monthly payment. Eric evaluates your eligibility and handles the process on your behalf.

Offer in Compromise (OIC)

The SBA will sometimes settle an EIDL for less than the full amount owed — but only under specific circumstances and with the right documentation. Eric knows what the SBA looks for and how to build a compelling case.

Business Owner Asset Protection

If your EIDL loan carries a personal guarantee, protecting your personal assets becomes the immediate priority. Eric works to identify and implement legal strategies to shield your home, retirement accounts, and personal finances before the SBA escalates collection.

Chapter 7 Corporate Bankruptcy

For business owners who need a clean exit, Chapter 7 corporate bankruptcy can provide a legal, structured way to close the business and address outstanding obligations — including SBA EIDL — with minimal personal exposure where possible.

Negotiated Settlement & Structured Resolution

In some cases, direct negotiation with the SBA or its loan servicer can result in a structured resolution that avoids bankruptcy entirely. Eric assesses whether this is viable and leads the negotiation.

An Attorney Who Also Speaks Accountant

When your EIDL is in default, the legal and financial sides of your situation are impossible to separate. Eric Zelazny is one of the few attorneys in Illinois who holds both a law license and a CPA credential — meaning he can evaluate your full exposure, not just the legal piece, and build a strategy that holds up on both fronts.

Schedule YOUR FREE IN-PERSON CONSULTATION

Contact us today to schedule your appointment.

Reviews From Our Clients

"I own a trucking company with big loans, back taxes, and messy records. Other lawyers kept turning me away. Eric didn’t flinch. He looked at everything, said, “Okay, here’s what we can do.” He helped me file the right kind of bankruptcy, got the creditors off my back, and made sure I didn’t lose my trucks. That was everything. I’m still in business today because of him."

"Nothing but the best- knowledge & service above and beyond , this is what you can expect if Eric is the attorney you hired. Experience, expertise and professionalism that he brings to the case given is definitely something that is a rare find these days. Eric is my attorney of choice for all legal needs in fields that his office covers."

"Eric is very professional and knowledgeable. The best thing about him, is that He is an accountant and a lawyer. Essentially once you hire him, all aspects of your case are being taken care off, from legal to financial side of things."

"Eric is so knowledgable and friendly. He gave us great advice to position our existing businesses and never made me feel rushed or that I was asking dumb questions. Making a consultation call with him is one of the best decisions I ever made and we will be using his services in the future."

"I recently had the privilege of hiring Eric Zelazny, and I must say that the experience was nothing short of exceptional. If you're in need of legal representation, look no further because Eric is truly an outstanding professional who deserves every accolade...I can’t recommend Eric enough.

"I had a consultation with Eric. He took his time and discussed every single aspect of the legal issue I was facing with me. During our consolation it was clear that Eric genuinely had my best interest in mind. His insight, thoughts and discussion helped us come to a conclusion that three other attorneys overlooked. I can not thank Eric enough. I am confident and proud to have him in my corner."

Let's Figure Out Your Options today - Contact Eric zelazny

Every SBA EIDL situation is different. The best first step is a free, in-person consultation where Eric reviews your loan status, your personal exposure, and your realistic options — no pressure, no obligation

Zelazny Business Bankruptcy can help you with minimal impact on your personal assets or income with the right help and plan for you and your specific business circumstances.