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We provide people who are facing an SBA loan default with solutions. We analyze SBA loan problems and provide solutions such as an SBA offer in compromise.
Yes, you may stop an administrative wage garnishment once it starts. If you did not have a hearing, have new evidence or changed finances it may stop.
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The Treasury will send you a notice of its intent to order an administrative wage garnishment. Thereafter, you can request a hearing. The hearing is usually a "paper hearing". This means you do not appear personally. Instead, you submit a legal brief and supporting evidence. However, if you fail to request a hearing timely, the Treasury will issue an administrative wage garnishment order to your employer. Similarly, if the hearing is held and the hearing officer finds in favor of the government, your wages will be garnished.
Once the administrative wage garnishment starts, you may stop it in limited circumstances. As stated, if you fail to submit your hearing request, the administrative wage garnishment order will issue. However, you can still submit a hearing request late. Thereafter, if a hearing officer does not make a decision within 60 days, the administrative wage garnishment will be suspended. The suspension will go into effect on the 61st day after your hearing request.
If you did request a hearing and the hearing officer ruled against you, you may obtain a new hearing if you obtain new evidence. However, the government will not provide you with a new hearing simply because you disagree with the hearing officer's initial decision. Instead, you must have obtained new evidence that would exonerate you from the administrative wage garnishment.
If your wages are subject to garnishment but your financial circumstances change, you may qualify for a financial hardship exemption. For instance, at the time of the original hearing your spouse may have been employed. But in the interim, your spouse suffered a lay off and remains unemployed, cutting your household income in half. As such, you may request a new hearing based on the financial hardship the garnishment now causes as you can't meet your basic living expenses. Keep in mind, you will have to provide financial documentation to prove the garnishment constitutes a financial hardship.
Our attorneys have years of experience dealing with administrative wage garnishments. Contact us today for a free initial consultation - 833-428-0934
Millions of Dollars in SBA Debts Resolved via Offer in Compromise and Negotiated Repayment Agreements without our Clients filing for Bankruptcy or Facing Home Foreclosure
Millions of Dollars in Treasury Debts Defended Against via AWG Hearings, Treasury Offset Program Resolution, Cross-servicing Disputes, Private Collection Agency Representation, Compromise Offers and Negotiated Repayment Agreements
Our Attorneys are Authorized by the Agency Practice Act to Represent Federal Debtors Nationwide before the SBA, The SBA Office of Hearings and Appeals, the Treasury Department, and the Bureau of Fiscal Service.
Our firm successfully negotiated an SBA offer in compromise (SBA OIC), settling a $974,535.93 SBA loan balance for just $18,000. The offerors, personal guarantors on an SBA 7(a) loan, originally obtained financing to purchase a commercial building in Lancaster, California.
The borrower filed for bankruptcy, and the third-party lender (TPL) foreclosed on the property. Despite the loan default, the SBA pursued the offerors for repayment. Given their limited income, lack of significant assets, and approaching retirement, we presented a strong case demonstrating their financial hardship.
Through strategic negotiations, we secured a favorable SBA settlement, reducing the nearly $1 million debt to a fraction of the amount owed. This outcome allowed the offerors to resolve their liability without prolonged financial strain.
Client personally guaranteed SBA 7(a) loan balance of $58,000. The client received a notice of Intent to initiate Administrative Wage Garnishment (AWG) Proceedings. We represented the client at the hearing and successfully defeated the AWG Order based on several legal and equitable grounds.
Client personally guaranteed SBA 7(a) loan for $150,000. COVID-19 caused the business to fail, and the loan went into default with a balance of $133,000. Client initially hired a non-attorney consultant to negotiate an OIC. The SBA summarily rejected the ineligible OIC and the debt was referred to Treasury’s ureau of Fiscal Service for enforced collection in the debt amount of $195,000. We were hired to intervene and initiated discovery for SBA and Fiscal Service records. We were able to recall the case from Fiscal Service back to the SBA. We then negotiated a structured workout with favorable terms that saves the client approximately $198,000 over the agreed-upon workout term by waiving contractual and statutory administrative fees, collection costs, penalties, and interest.
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