How Much of My Paycheck Can the Government Garnish?
The federal government can garnish up to 15% of your paycheck without first obtaining a civil court judgment. This can strike at the heart of your finances.
Local attorneys help business owners when they are facing a possible default on their loans. When defaulting, this indicates that the lender has the legal right to start the foreclosure process. This process allows them to take possession of the property used as collateral and sell it at auction. A SBA Offer in Compromise is an opportunity to prevent the lender from taking these steps.
The small business owner receives a SBA demand letter once they have defaulted on their loan. The default indicates that the loan is at least ninety-days delinquent. It also allows the lender to acquire full payment of the loan. Once the borrower has acquired a SBA loan default, they should approach an attorney. The attorney could help them find a more reasonable solution instead of foreclosure.
The attorney discusses the possibilities with the lender. Together they determine the most fair and reasonable percentage to settle the loan default. This percentage could be as much as fifty percent of the total value required. By submitting this offer to the lender, the borrower could keep their business operating and reduce the financial impact of settling the debt.
The attorney prepares the documentation for the offer. They submit the documents to the lender. Upon acceptance, the lender provides the borrower with the correct documents for finalizing this process. Once the offer is accepted the SBA loan foreclosure stops.
However, if the property was used as collateral to secure the loan the lender may collect it as well. The attorney should review the terms of the settlement with the borrower to identify any clauses that affect ownership of the property. If possible, the attorney may negotiate a settlement that allows the business owner to keep the property based on how much equity they have accumulated.
Local attorneys could help small business owners avoid foreclosure through a settlement offer. This offer helps them to prevent major damage to the business owner's credit. It could also help the business owner avoid the requirement of paying the full outstanding balance of the loan. Business owners who need to acquire help with a default or need a Tax Offset Program should contact an attorney now.
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.
Small business and guarantors obtained an SBA COVID-EIDL loan for $1,000,000. Clients defaulted causing SBA to charge-off the loan, accelerate the balance and refer the debt to Treasury's Bureau of Fiscal Service for collection. Treasury added nearly $500,000 in collection fees totaling $1,500,000. Clients were served with the SBA's Official 60-Day Notice and exercised the Repayment option by applying for the SBA’s Hardship Accommodation Plan. However, their application was summarily rejected by the SBA without providing any meaningful reasons. Clients hired the Firm to represent them against the SBA, Treasury and a Private Collection Agency. After securing government records through discovery, we filed an Appeals Petition with the SBA Office of Hearings & Appeals (OHA) court challenging the SBA's referral of the debt to Treasury. During litigation and before the OHA court issued a final Decision and Order, the Firm successfully negotiated a reinstatement and recall of the loan back to the SBA, a modification of the original repayment terms, termination of Treasury's enforced collection and removal of the statutory collection fees.
Clients borrowed and personally guaranteed an SBA 7(a) loan. Clients defaulted on the SBA loan and were sued in federal district court for breach of contract. The SBA lender demanded the Client pledge several personal real estate properties as collateral to reinstate and secure the defaulted SBA loan. We were subsequently hired to intervene and aggressively defend the lawsuit. After several months of litigation, our attorneys negotiated a reinstatement of the SBA loan and a structured workout that did not involve any liens against the Client's personal real estate holdings.
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.
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