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. If a borrower has a certain bank loan which was guaranteed by the SBA and there was a default made, then the borrower can get a protection by going for bankruptcy filing. However, the SBA has that option of allowing that defaulted borrower to make such OIC instead of filing bankruptcy.
Such borrower should be aware that the SBA offer in compromise is actually a privilege and this is not a right and the SBA is not obligated to get the OIC and will do this when the SBA feels that such is a good offer and there is no misrepresentation, fraud or concealment. 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. But, there are those guidelines that you should click for details and 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. There may actually a belief that the SBA would go for 20 percent, there is really no magic percentage that the SBA would want to accept 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. 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.
It would be important that you find an attorney in order to get more knowledge when it comes to settlement amount. 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 may find a good lawyer with the help of 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.