Things to Know Regarding the SBA Offer in Compromise Settlement Amount
You have to be aware that things related to this can be very complicated. The settlement amount is determined by different factors. When the borrower has a bank loan, that is guaranteed by a certain SBA, and one has defaulted, then the borrower has that option to seek for protection by filing bankruptcy. However, the SBA has that option of allowing that defaulted borrower to make such OIC instead of filing bankruptcy.
The borrower must know that the SBA offer in compromise is one privilege and not a right and the SBA is actually in no obligation to get an OIC and will do so when the SBA feels that it is a good offer and there is no concealment, fraud or misrepresentation. The manner of which the SBA would decide on such is usually confusing and would also feel like they are using this form of black magic to be able to know such and is also dependent on the person who would go through the file. Try to click for details and also for you get more info.
You should know that in order to put that right OIC, then a few criteria should be followed. The size of deficiency should be known. You must know that the amount of the deficiency is really a huge factor to know the settlement amount. But, while there is such belief that the SBA would look to get a twenty percent recover, there is certainly no magic percentage which the SBA is going to accept for SBA loan settlement negotiation.
Moreover, the borrower should make a way to prevent bankruptcy. Well, it is quite important that you have a good SBA loan default attorney for this matter. You must know that filing a BK comes with a hidden cost. Operating in such business world is complicated if the borrower would file for BK and such complications may cost real money over ten years that a BK is reported on that credit report. When the settlement cost is much higher than this, the borrower should opt for protection with bankruptcy.
To know the settlement amount, then you should find an attorney in order to know more. There are a lot of loan attorneys which you can speak of so that you will get to know more regarding the SBA OIC settlement amount. You can find such great lawyer with the Protect Law Group. In order to have the right information which you would like to know, then it is quite essential that you speak with such SBA loan attorneys.