Importance of Having Experienced Legal Representation
Having experienced legal representation is essential when it comes to settling your SBA debt. Contact Protect Law Group in Carlsbad, CA today!
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.
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.
Clients obtained an SBA 7(a) loan for their small business in the amount of $298,000. They pledged their primary residence and personal guarantees as direct collateral for the loan. The business failed, the lender was paid the 7(a) guaranty money and the debt was assigned to the SBA. Clients received the Official 60-Day Notice giving them a couple of options to resolve the debt balance directly with the SBA before referral to Treasury's Bureau of Fiscal Service. The risk of referral to Treasury would add nearly $95,000 to the SBA principal loan balance. With the default interest rate at 7.5%, the amount of money to pay toward interest was projected at $198,600. Clients hired the Firm with only 4 days left to respond to the 60-Day due process notice. Because the clients were not eligible for an Offer in Compromise (OIC) due to the significant equity in their home and the SBA lien encumbering it, the Firm Attorneys proposed a Structured Workout to resolve the SBA debt. After back and forth negotiations, the SBA Loan Specialist assigned to the case approved the Workout terms which prevented potential foreclosure of their home, but also saved the clients approximately $294,000 over the agreed-upon Workout term with a waiver of all contractual and statutory administrative fees, collection costs, penalties, and interest.
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.
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