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. But, the SBA has such option of allowing such defaulted borrower to make that OIC in lieu of filing Chapter 7 bankruptcy.
Such borrower must know that the SBA offer in compromise is a kind of privilege and such is actually not a right and the SBA is not obligated to have such OIC and will do so if the SBA feels that this is a great offer and there is also no fraud, concealment or any other problem. The way that the SBA would decide on this is often confusing and would feel like they are using such form of black magic to know this and is reliant on the person who is going through the file. However, there are actually guidelines which you must click for details and to get more info.
Simply, you should put an acceptable OIC is determined by a few general criteria. 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. There can be those who think that the SBA would opt for 20 percent to recover, there is really no magic percentage which the SBA would be willing to get for SBA loan settlement negotiation.
Also, there should be the borrowers desire in order to prevent bankruptcy. To address such, there must be a great SBA loan default attorney. Be aware that filing for that BK would come with a hidden cost. You have to keep in mind that operating in the business world is not easy at all when the borrower is going to file for BK and there are complications that one may have to face too. 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 many loan attorneys that you may talk to so that you will be able to know more about the SBA OIC settlement amount. You can find such great lawyer with the Protect Law Group. You should speak with the SBA loan attorneys so that you will be able to get the information that you must know.