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.
Discover the truth behind common misconceptions about SBA Offers in Compromise. Get insights into the myths of the OIC. Find out how to navigate these misconceptions effectively.
Book a Consultation CallWhen it comes to the world of small business finances, one topic that often causes confusion and uncertainty is SBA (Small Business Administration) Offers in Compromise (OIC). However, along with genuine information, there are several misconceptions floating around that can mislead business owners. In this comprehensive guide, we're here to debunk these myths and provide accurate insights into SBA Offers in Compromise.
Many business owners believe that once they apply for an SBA Offer in Compromise, their SBA debts will automatically be reduced, and their financial burdens will disappear. However, this is far from the truth. SBA Offers in Compromise go through a rigorous evaluation process, and not all offers are accepted. The success of your offer depends on various factors, including your ability to demonstrate genuine financial distress.
Some people think that applying for an SBA Offer in Compromise is as easy as filling out a basic form. In reality, the application process is complex and requires meticulous attention to detail. It involves submitting detailed financial information, tax documents, and a compelling case for your financial hardship. Working with an attorney experienced in SBA OICs can significantly improve your chances of success.
It's a common misconception that only people on the verge of bankruptcy qualify for an SBA Offer in Compromise. While financial hardship is a key criterion, it doesn't mean you need to be on the brink of collapse. As long as you can prove that paying the full amount would cause significant financial strain, you may be eligible.
Another misconception is that applying for an SBA Offer in Compromise puts an immediate stop to all collections activities by the SBA or Treasury. While the application is being evaluated collections can continue.
Every person's financial situation is unique, and SBA Offers in Compromise are not a standardized solution. The SBA takes into account various factors, including your assets, income, expenses, and future earning potential, when evaluating your application. There is no one-size-fits-all approach, and outcomes can vary widely.
While successfully settling your debt through an SBA Offer in Compromise is a positive step, it doesn't automatically repair your credit score overnight. The process of rebuilding your credit takes time and consistent financial responsibility.
The SBA's standard operating procedures state that such an offer is permissible, but in practice the SBA usually requires that the business has been closed with the secretary of state.
No, there are no upfront fees required to submit an application for an SBA Offer in Compromise. However, qualified legal counsel will request payment for their services. Furthermore, most accepted OICs must be paid in a lump sum within 60 days of acceptance.
Once the SBA accepts your Offer in Compromise, you are bound by the terms. Negotiation is not possible after acceptance.
The processing time for an SBA Offer in Compromise can vary widely, often taking several months. Patience is crucial during this period.
Separating fact from fiction is vital when it comes to SBA Offers in Compromise. By dispelling these common misconceptions, we hope to provide clarity and guidance for business owners seeking solutions to their SBA debt challenges. Remember, seeking professional advice and thoroughly understanding the process can significantly increase your chances of a successful outcome. Please contact us for more 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.
Clients personally guaranteed an SBA 7(a) loan that was referred to the Department of Treasury for collection. Treasury claimed our clients owed over $220,000 once it added its statutory collection fees and interest. We were able to negotiate a significant reduction of the total claimed amount from $220,000 to $119,000, saving the clients over $100,000 by arguing for a waiver of the statutory 28%-30% administrative fees and costs.
Client personally guaranteed SBA 7(a) loan for $350,000. The small business failed but because of the personal guarantee liability, the client continued to pay the monthly principal & interest out-of-pocket draining his savings. The client hired a local attorney but quickly realized that he was not familiar with SBA-backed loans or their standard operating procedures. Our firm was subsequently hired after the client received the SBA's official 60-day notice. After back-and-forth negotiations, we were able to convince the SBA to reinstate the loan, retract the acceleration of the outstanding balance, modify the original terms, and approve a structured workout reducing the interest rate from 7.75% to 0% and extending the maturity date for a longer period to make the monthly payments affordable. In conclusion, not only we were able to help the client avoid litigation and bankruptcy, but our SBA lawyers also saved him approximately $227,945 over the term of the workout.
Clients personally guaranteed SBA 7(a) loan balance of over $300,000. Clients also pledged their homes as additional collateral. SBA OIC accepted $87,000 with the full lien release against the home.
.jpg)
