Wayne Richard Lukaszewski and Christina McCray Lukaszewski, 25-31101

The Lukaszewskis filed for Chapter 13 bankruptcy relief on February 28, 2025.
Their schedules listed a significant loan from the U.S. Small Business Administration (SBA) as an unsecured debt.
The SBA loan was issued to "Christina McCray Real Estate" in 2020, with Christina McCray Lukaszewski personally guaranteeing repayment.
The security agreement for the loan named only the business as the borrower; no UCC-1 financing statement was filed, and the debtor in bankruptcy is not the business, but the individuals.
SBA filed a proof of claim classified as wholly unsecured against the Lukaszewskis personally, and they did not object.
The Chapter 13 Trustee moved to dismiss or convert the case, asserting the Lukaszewskis exceeded the unsecured debt limit set by 11 U.S.C. § 109(e).

Issue	Trustee's Argument	Lukaszewskis' Argument	Held
Whether the SBA debt counts as unsecured for § 109(e) eligibility	The SBA loan is unsecured, and therefore the Lukaszewskis exceed the debt limit for Chapter 13	The SBA has a security agreement, so the debt should be considered secured and excluded from the unsecured total	The SBA loan is unsecured as to the Lukaszewskis; eligibility is based on this, so they exceed the § 109(e) limit
Does the security agreement render the SBA's claim secured as to the individual debtors?	No perfected security interest exists in the assets of the individuals; the claim is unsecured	The signed security agreement should be enough to make the SBA claim secured	The security agreement covers business assets only, not individual debtors; the claim is unsecured as to the Lukaszewskis
Can a personal guaranty create a secured debt without collateral?	A guaranty is unsecured unless backed by collateral	The guarantee and security agreement together create secured debt	The personal guaranty is not collateralized; debt remains unsecured
Does the business entity's security agreement affect the individuals' bankruptcy eligibility?	The business is distinct from individual debtors; its assets do not make the SBA loan secured in this case	The business security interest should impact the individuals' debt calculation	The business's assets do not affect individual eligibility; debt is unsecured for the Lukaszewskis

In re Pearson, 773 F.2d 751 (6th Cir. 1985) (court generally defers to debtor's schedules for eligibility, subject to good faith)
In re Scovis, 249 F.3d 975 (9th Cir. 2001) (eligibility for Chapter 13 is assessed as of the petition date)