Can you stop an administrative wage garnishment once it starts?
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.
Defaulted SBA Loan Offer in Compromise? Answers to questions by borrowers in SBA default considering submitting a fully compliant Offer in Compromise.
Book a Consultation CallThe Small Business Administration provides loans for entrepreneurs to start smaller business ventures. These loans are guaranteed by the government and require the business owner to pay them back according to the schedule set up. When the business owner faces financial difficulties, they may not have the funds needed to repay the loan. This could result in a default. When this happens, an SBA Loan Offer in Compromise could prevent the company from facing financial ruin.
Essentially, the offer in compromise is a settlement offer submitted by a financial advisor or attorney. It reflects are reduced value in which the business owner could pay their lender to settle the debt. An SBA loan default requires action on the borrower's part to avoid unwanted circumstances. This compromise is an effective strategy to prevent these circumstances and prevent a larger financial loss for the owner.
The owner should utilize an offer in compromise as soon as they receive the SBA demand letter. This letter is the last step of the notification process before the SBA takes further legal action. These actions could include seizure of property and assets. They could place a lien against the borrower's checking account, savings account, and all property in their name. These measures are taken to acquire payment of the total balance plus any late fees that accumulated.
Through an SBA loan foreclosure, the lender could seize the borrower's primary residence. This could occur if the property is used as collateral or included in the properties owned by the business. If properties and assets that are business-related could be used to pay off the loan, the primary residence isn't in jeopardy. However, the consumer may need an attorney to fight against these actions.
Small business owners must take quick action if their loan defaults. These actions could lead to a domino effect in which they lose all their property and assets. An attorney could help them by finding a better solution to this problem. Business owners who need assistance with a compromise or Tax Offset Program should contact an attorney immediately.
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.
Clients personally guaranteed SBA 504 loan balance of $750,000. Clients also pledged the business’s equipment/inventory and their home as additional collateral. Clients had agreed to a voluntary sale of their home to pay down the balance. We intervened and rejected the proposed home sale. Instead, we negotiated an acceptable term repayment agreement and release of lien on the home.
Clients executed several trust deeds pledging seven (7) real estate properties and unconditional personal guarantees for an SBA 7(a) loan from the participating lender. The clients' small business failed and eventually defaulted on repayment of the loan exposing all collateral pledged by the clients. The SBA subsequently acquired the loan balance from the lender, including the right to liquidate and collect all pledged collateral pursuant to the trust deed instruments.
The Firm was hired to negotiate separate release of lien proposals for all 7 real estate properties. In preparation for the work assignment, the Firm Attorneys initiated discovery to secure records from the SBA and Treasury's Bureau of Fiscal Service. After reviewing the records and understanding the interplay between the lender and the SBA, the attorneys then prepared, submitted and negotiated the release of lien (ROL) for each of the 7 real estate properties for consideration.
After submitting the proposals, the assigned SBA Loan Specialists approved each ROL package - significantly reducing the total SBA debt claimed.
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