If you Owe more than $30,000 contact us for a case evaluation at (833) 428-0937
contact us for a free case evaluation at (833) 428-0937
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Working With Legal Counsel Or A Representative

Discover the complexities of SBA and Treasury debt resolution with expert legal counsel. Learn how strategic legal assistance can enhance outcomes and safeguard interests.

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Have you ever considered the complexities that arise when dealing with legal issues, particularly in matters related to federal debt or small business administration (SBA) loans? The landscape can often be intricate, necessitating significant expertise and strategic navigation. That’s where the role of a proficient legal counsel or representative becomes indispensable. This article explores the benefits and processes of working with legal professionals, particularly in the context of SBA and Treasury debt issues, drawing on the expertise offered by entities like Protect Law Group.

Why Partner with Legal Counsel or a Representative?

Choosing to work with legal counsel or a representative can dramatically affect the trajectory of your SBA debt resolution process. Navigating federal debt issues requires more than just a cursory understanding of laws; it involves strategic planning and implementing steps to prevent and mitigate adverse outcomes. Here we explore why engaging with professional legal assistance can be a game-changer.

Expertise in Complex Legal Matters

Legal counsel specializing in SBA and Treasury debt matters possess in-depth knowledge of the laws and regulations governing these areas. They can apply legal authorities to support your positions, thereby enhancing the likelihood of favorable outcomes. Their proficiency allows them to delve into nuanced aspects of the law that might escape laypersons.

Strategic Planning and Implementation

Experienced attorneys can develop and implement proactive strategies to address and potentially resolve your debts. From diagnosing case issues to educating you on options and helping formulate effective plans, the role of an attorney is pivotal in navigating legal waters. Having a strategy is essential in managing the complexities inherent in SBA loan problems.

Representation Across Federal Agencies

Navigating communication and legal processes with federal agencies can be daunting. Legal representatives authorized by the Agency Practice Act can represent you before the SBA, its Office of Hearings and Appeals, the Treasury Department, and the Bureau of Fiscal Service. Such representation ensures your interests are professionally advocated at every level.

Understanding SBA Debt Resolution

Understanding the different avenues for resolving SBA debt is crucial for any federal debtor or small business owner facing financial challenges. Legal representatives often distinguished in SBA debt resolution, offer various services, each tailored to specific circumstances.

SBA Offer in Compromise (OIC)

This program provides an avenue for eligible small businesses to settle their SBA debt efficiently. By negotiating a reduced debt amount, businesses can manage their financial obligations more feasibly. Legal representatives can guide you through the complexities of this process, ensuring you meet eligibility requirements and effectively present your case.

Structured Workout Agreements

Under structured workout agreements, borrowers negotiate an installment-based repayment method with the SBA. Legal counsel can facilitate these negotiations to extend repayment periods and better align them with your business’s financial capabilities, thus alleviating immediate financial pressures.

Administrative Litigation and Negotiation Services

In cases where litigation is unavoidable, seasoned attorneys can represent clients before administrative bodies like the SBA’s Office of Hearings and Appeals. By leveraging their expertise, they can ensure a robust defense or prosecution of your case. Skilled negotiation can also play a significant role in securing favorable terms without reaching the courtroom.

Overcoming Legal and Procedural Challenges

When engaging with federal entities or dealing with debt-related legal matters, procedural and factual errors are common challenges. Legal representatives versed in the nuances of legal processes are invaluable in overcoming these obstacles.

Investigating and Resolving Errors

Attorneys can investigate factual, procedural, and legal errors that may impact your case. A thorough investigation often unearths discrepancies or alternative interpretations of laws that can be leveraged to benefit your position. Their proficiency allows for crafting compelling arguments and pursuing dispute resolutions or defenses effectively.

Proactive Intervention in Collection Activities

Legal representatives adept in debt collection laws can intervene in response to notices regarding administrative offsets and similar actions. By intervening effectively, they can halt or negotiate more favorable terms for collection activities, thus securing better outcomes for you.

Protect Law Group: A Case Study in Legal Excellence

The excellence embodied by Protect Law Group in resolving SBA-related legal issues serves as a benchmark for utilizing legal services. The firm demonstrates how leveraging expertise and strategic foresight can assure superior results.

Core Areas of Legal Expertise

Protect Law Group specializes in areas key to federal debtors and business owners, employing six core principles that streamline and elevate the legal resolution process. Their emphasis on ethics, technology-driven solutions, and client education underscores their commitment to high standards and effective case management.

Results-Driven Outcomes

The firm has resolved millions of dollars in SBA debts through Offers in Compromise and Negotiated Repayment Agreements. Their notable success rate in reaching favorable outcomes is a testament to their negotiation prowess and comprehensive legal understanding.

Differentiating Characteristics

What sets Protect Law Group apart is not only their results but also the holistic customer experience they provide. By exceeding client expectations, they establish trust and reliability, which are critical when dealing with sensitive financial and legal concerns.

Steps to Take When Facing SBA Debt Challenges

Facing SBA debt challenges can be overwhelming. However, taking informed steps can significantly impact your situation, paving the way for resolution and peace of mind.

Initial Case Evaluation

Engage with a legal professional for an initial case evaluation. This step provides insight into your specific situation and outlines potential strategies and outcomes. An initial evaluation can help clarify the complexity of your case and identify the appropriate legal channels for resolution.

Understanding Your Legal Options

Educate yourself on the various legal options and strategies available. Legal counsel can guide you through this maze of possibilities, offering clarity and direction. Understanding your options can empower you to make informed decisions and actively participate in the resolution process.

Implementing a Strategic Plan

Once you have a clear understanding of your case and options, work with your legal representative to implement a strategic plan. This plan should be designed to minimize risk, resolve debt obligations, and safeguard your business or personal assets.

Continuous Case Management and Follow-Up

Effective resolution of legal matters requires ongoing management and follow-up. Legal professionals can offer continuous case management, adapting to new developments and maintaining momentum towards resolution. Regular updates and reviews ensure that your case is progressing and that any emerging issues are promptly addressed.

Conclusion

Engaging a legal counsel or representative for navigating legal challenges related to SBA and Treasury debt not only adds significant expertise but also ensures that strategic and prudent actions are taken on your behalf. Whether through proactive strategies, skilled negotiations, or adept representation, a proficient legal partner is instrumental in traversing complex legal terrains. By leveraging the expertise of firms like Protect Law Group, individuals, and businesses can secure a path forward that aligns with their financial and legal interests. Understanding and utilizing these services can lead to successful outcomes and peace of mind, even amid the challenging circumstances of debt resolution.

$310,000 SBA 7A LOAN - SBA OIC TERM WORKOUT

$310,000 SBA 7A LOAN - SBA OIC TERM WORKOUT

Client personally guaranteed an SBA 7(a) loan for $100,000 from the lender. The SBA loan went into early default in 2006 less than 12 months from disbursement. The SBA paid the 7(a) guaranty monies to the lender and subsequently acquired the deficiency balance of about $96,000, including the right to collect against the guarantor. However, the SBA sent the Official 60-Day Due Process Notice to the Client's defunct business address instead of his personal residence, which he never received. As a result, the debt was transferred to Treasury's Bureau of Fiscal Service where substantial collection fees were assessed, including accrued interest per the promissory note. Treasury eventually referred the debt to a Private Collection Agency (PCA) - Pioneer Credit Recovery, Inc. Pioneer sent a demand letter claiming a debt balance of almost $310,000 - a shocking 223% increase from the original loan amount assigned to the SBA. Client's social security disability benefits were seized through the Treasury Offset Program (TOP). Client hired the Firm to represent him as the debt continued to snowball despite seizure of his social security benefits and federal tax refunds as the involuntary payments were first applied to Treasury's collection fees, then to accrued interest with minimal allocation to the SBA principal balance.

We initially submitted a Cross-Servicing Dispute (CSD) challenging the referral of the debt to Treasury based on the defective notice sent to the defunct business address. Despite overwhelming evidence proving a violation of the Client's Due Process rights, the SBA still rejected the CSD. As a result, an Appeals Petition was filed with the SBA Office of Hearings & Appeals (OHA) Court challenging the SBA decision and its certification the debt was legally enforceable in the amount claimed. After several months of litigation before the SBA OHA Court, our Firm Attorney successfully negotiated an Offer in Compromise (OIC) Term Workout with the SBA Supervising Trial Attorney for $82,000 spread over a term of 74 months at a significantly reduced interest rate saving the Client an estimated $241,000 in Treasury collection fees, accrued interest (contract interest rate and Current Value of Funds Rate (CVFR)), and the PCA contingency fee.

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$680,000 SBA COVID-EIDL LOAN - SBA OHA LITIGATION

$680,000 SBA COVID-EIDL LOAN - SBA OHA LITIGATION

Small business sole proprietor obtained an SBA COVID-EIDL loan for $500,000. Client defaulted causing SBA to charge-off the loan, accelerate the balance and refer the debt to Treasury's Bureau of Fiscal Service for aggressive collection. Treasury added $180,000 in collection fees totaling $680,000+. Client tried to negotiate with Treasury but was only offered a 3-year or 10-year repayment plan. Client hired the Firm to represent before the SBA, Treasury and a Private Collection Agency.  After securing government records through discovery and reviewing them, we filed an Appeals Petition with the SBA Office of Hearings & Appeals (OHA) court challenging the SBA's referral of the debt to Treasury citing a host of purported violations. The Firm was able to negotiate a reinstatement and recall of the loan back to the SBA, participation in the Hardship Accommodation Plan, termination of Treasury's enforced collection and removal of the statutory collection fees.

$1,200,000 SBA 7A LOAN - SBA OHA LITIGATION

$1,200,000 SBA 7A LOAN - SBA OHA LITIGATION

Client personally guaranteed an SBA 7(a) loan to help with a relative’s new business venture.  After the business failed, Treasury was able to secure a recurring Treasury Offset Program (TOP) levy against his monthly Social Security Benefits based on the claim that he owed over $1.2 million dollars. We initially submitted a Cross-Servicing Dispute, but then, prepared and filed an Appeals Petition with the SBA Office of Hearings and Appeals (SBA OHA).  As a result of our efforts, we were able to convince the SBA to not only terminate the claimed debt of $1.2 million dollars against our client (without him having to file bankruptcy) but also refund the past recurring amounts that were offset from his Social Security Benefits in connection with the TOP levy.

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