Case Evaluations: How to Maximize Your SBA Lawyer Consultation
Learn how to present your information and ask smart questions when inquiring SBA attorney services through our free lawyer consultation.
Learn how to present your information and ask smart questions when inquiring SBA attorney services through our free lawyer consultation.
Book a Consultation CallEntrepreneurs earn handsome rewards by taking risks. However, those risks don’t always result in success. When this happens, what do you do when you still owe on an SBA-backed loan?
If you’re like most business hopefuls, you most likely spent a great amount of time thinking about how your business will succeed. Most entrepreneurs don’t think about the risk of failure
Unfortunately, not all enterprises live up to entrepreneurs’ expectations. If you received an SBA-backed loan and your business failed, however, you need to act now.
The first thing that you need to do is hire an attorney. However, it’s important to make the most of the initial attorney consultation.
To learn how to maximize your SBA lawyer consultation, continue reading.
Lawyer Consultation
Before you speak with a lawyer, you need to organize your information. The information that you offer must present a full picture of your situation.
With this in mind, gather all information relevant to your SBA loan. You should also gather any documentation that can serve as evidence supporting the reason why your business failed or why you do not owe the debt.
Next, write down everything about the situation from beginning to end. Record all information in chronological order.
At this point, you’ll probably accumulate a considerable amount of documentation. It’s helpful to keep everything together in a folder.
You also want to make a list of everyone that can support your argument. The list should include names and contact numbers for the lawyer.
The lawyer may not contact everyone on the list or need all of this information. However, it’s important to give your counselor everything that they need to support you.
For this reason, it’s important to provide every detail possible about your business and the circumstances that led you to default on the loan. For example, it’s important to include small facts such as the exact names of involved parties and dates regarding any incidents.
You may think that little details won’t make a difference in your case. However, every detail is important when it comes to legal matters.
A small fact can make a big difference in the outcome of your case. It’s your responsibility to give your lawyer all the information that they need to provide a positive result on your behalf.
Before you ask a lawyer for legal advice, it’s important to ask a few questions. When you speak with an attorney, for instance, it’s important to learn about their background.
Some people feel intimidated by asking a lawyer about their experience. However, you’re going to rely on this professional to manage a very important issue on your behalf.
You wouldn’t hire a plumber to fix your electrical system. Likewise, you don’t want to hire a lawyer to help with your SBA offer in compromise whose experienced mostly in trademark law. Accordingly, it makes good sense to prepare questions to ask an attorney.
Also, do some online research. Check out reviews from previous clients if they are available. You can also browse a potential lawyer’s website to find out what you can about the counselor or firm. Most attorneys won't provide references because it can violate privileged attorney-client communications.
When you choose a lawyer, it’s important to understand their strategy for your case. It’s also helpful to ask what procedures may be involved in reaching a resolution.
You also want to know how long it will take to resolve your issue. Additionally, you want to find out if there are various options available to resolve your debt. Understand that, ethically, attorneys cannot guarantee a result.
While you should expect transparency from your lawyer, the opposite is also true. You must practice complete honesty with your counselor.
Try to remember that your lawyer is on your side. Hiding information is not going to help your case. If you omit or obscure facts about your circumstances, it can damage the outcome of your situation.
As a result, you’ll have to tell your lawyer everything – good and bad. This transparency will give your counselor the information they need to provide you with the best possible attorney advice.
Also, the lawyer cannot resolve your issue overnight. As time passes, circumstances may likely change.
If so, you must update your counselor as soon as possible. Any small development can drastically change the outcome of your efforts to resolve your debt
In most instances, it takes time to resolve these kinds of issues.
It’s important to choose an attorney who takes the time to make sure that you understand your situation fully. However, it’s also important to choose a counselor as soon as possible. If you wait to find a lawyer, you may limit your legal options.
Also, make an effort to find out how much it will cost you for representation. Attorneys have varying rates and payment options. It’s important to understand your financial obligations to your lawyer.
Finally, it often helps to bring a trusted friend along for emotional support during stressful times. However, this practice isn’t necessarily a good idea when it comes to legal matters.
The law protects communications between you and your counselor. However, you might jeopardize that privilege if you bring a third-party along when you talk to a lawyer.
Now that you know more about preparing for a lawyer consultation, you also need an expert lawyer with experience.
Protect Law Group specializes in Small Business Administration matters. Our counselors are experienced, ethical, and competent. We’re here to discuss your situation and help you to find the best possible solution.
You deserve unparalleled attention and focus on your case. At Protect Law Group, it’s our mission to provide you with that service.
If you’d like to learn more about how Protect Law Group can help you resolve your unpaid SBA-backed loan, please call us at (833) 428-093 Please note, we do charge a nominal fee for consultations regarding CARES Act related information.
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.
The client personally guaranteed an SBA 504 loan balance of $375,000. Debt had been cross-referred to the Treasury at the time we got involved with the case. We successfully had debt recalled to the SBA where we then presented an SBA OIC that was accepted for $58,000.
Clients obtained an SBA 7(a) loan for $324,000 to buy a small business and its facility. The business and real estate had an appraisal value of $318,000 at the time of purchase. The business ultimately failed but the participating lender abandoned the business equipment and real estate collateral even though it had valid security liens. As a result, the lender recouped nearly nothing from the pledged collateral, leaving the business owners liable for the deficiency balance. The SBA paid the lender the 7(a) guaranty money and was assigned ownership of the debt, including the right to collect. However, the clients never received the SBA Official 60-Day Notice and were denied the opportunity to negotiate an Offer in Compromise (OIC) or a Workout directly with the SBA before being transferred to Treasury's Bureau of Fiscal Service, which added an additional $80,000 in collection fees. Treasury garnished and offset the clients' wages, federal salary and social security benefits. When the clients tried to negotiate with Treasury by themselves, they were offered an unaffordable repayment plan which would have caused severe financial hardship. Clients subsequently hired the Firm to litigate an Appeals Petition before the SBA Office & Hearings Appeals (OHA) challenging the legal enforceability and amount of the debt. The Firm successfully negotiated a term OIC that was approved by the SBA Office of General Counsel, saving the clients approximately $205,000.
Client’s small business obtained an SBA 7(a) loan for $750,000. She and her husband signed personal guarantees exposing all of their non-exempt income and assets. With just 18 months left on the maturity date and payment on the remaining balance, the Great Recession of 2008 hit, which ultimately caused the business to fail and default on the loan terms. The 7(a) lender accelerated and sent a demand for full payment of the remaining loan balance. The SBA lender’s note allowed for a default interest rate of about 7% per year. In response to the lender's aggressive collection action, Client's husband filed for Chapter 7 bankruptcy in an attempt to protect against their personal assets. However, his bankruptcy discharge did not relieve the Client's personal guarantee liability for the SBA debt. The SBA lender opted to pursue the SBA 7(a) Guaranty and subsequently assigned the loan and the right to enforce collection against the Client to the SBA. The Client then received the SBA Official 60-Day Notice. After conducting a Case Evaluation with her, she then hired the Firm to respond and negotiate on her behalf with just 34 days left before the impending referral to Treasury. The Client wanted to dispute the SBA’s alleged debt balance as stated in the 60-Day Notice by claiming the 7(a) lender failed to liquidate business collateral in a commercially reasonable manner - which if done properly - proceeds would have paid back the entire debt balance. However, due to time constraints, waivers contained in the SBA loan instruments, including the fact the Client was not able to inspect the SBA's records for investigation purposes before the remaining deadline, Client agreed to submit a Structured Workout for the alleged balance in response to the Official 60-Day Notice as she was not eligible for an Offer in Compromise (OIC) because of equity in non-exempt income and assets. After back and forth negotiations, the SBA Loan Specialist approved the Workout proposal, reducing the Client's purported liability by nearly $142,142.27 in accrued interest, and statutory collection fees. Without the Firm's intervention and subsequent approval of the Workout proposal, the Client's debt amount (with accrued interest, Treasury's statutory collection fee and Treasury's interest based on the Current Value of Funds Rate (CVFR) would have been nearly $291,030.
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