If you Owe more than $30,000 contact us for a case evaluation at (833) 428-0937
contact us for a free case evaluation at (833) 428-0937
Call us (833) 428-0937

Tips for Finding an Attorney After Receiving an SBA Offer in Compromise

Book a Consultation Call

Tips for Finding an Attorney After Receiving an SBA Offer in Compromise

When a person is facing legal issues because of an SBA loan default, finding legal help can be an intimidating prospect. Below are resources and strategies to help potential clients find the right lawyer after receiving an SBA demand letter.

Determine Which Type of Lawyer is Needed

Many lawyers focus their efforts on a certain area of law. Debt relief attorneys typically work in the consumer, bankruptcy or legal defense areas. It is normal for clients to not know exactly what they need when choosing an attorney. Although some lawyers work in a specific area, most work with those who have multiple problems. For example, when an attorney evaluates a client’s finances, they may suggest a Tax Offset Program rather than litigation. Similarly, a litigator may recommend bankruptcy.

Finding a Competent Lawyer

If a person needs a debt help lawyer to assist with an SBA loan foreclosure, they can start in the following places.

  • Referrals: If a client has used an attorney for previous cases, that lawyer can likely recommend a debt help firm. Friends, family and coworkers can also provide recommendations.
  • Legal directories: Clients can find a local lawyer in an online legal directory.
  • Prepaid plans: Many large employers offer legal plans, which refer clients to an attorney who offers a evaluation and a reduced fee. Contact the employer’s HR department to find out if such a plan is offered.
  • Bar associations: Local and state bar associations typically provide lists of attorneys who work in certain legal areas. In large cities, bar associations sometimes hold clinics where potential clients can speak to attorneys about case specifics.

Finding a Debt Help Lawyer

Many debt relief attorneys offer free or low-cost consultations, and some hold meetings over the phone. Clients should be ready to discuss the SBA Offer in Compromise. A competent attorney will consider the client’s financial status before offering specific advice. During the initial meeting, the client should ask the lawyer which services are provided and what the costs will be. While it may be tempting to hire a debt settlement company, clients should consider that these firms are not staffed by lawyers and they cannot offer legal advice.

Why Hire Us to Help You with Your Treasury or SBA Debt Problems?

construction accident injury lawyer

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

slip and fall attorney

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

truck accident injury attorney

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.

$1,500,000 SBA COVID-EIDL LOAN - SBA OHA LITIGATION

$1,500,000 SBA COVID-EIDL LOAN - SBA OHA LITIGATION

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.

$140,000 SBA 7(a) LOAN – PERSONAL GUARANTY LIABILITY | NEGOTIATED 50% SETTLEMENT

$140,000 SBA 7(a) LOAN – PERSONAL GUARANTY LIABILITY | NEGOTIATED 50% SETTLEMENT

Our firm successfully resolved an SBA 7(a) loan default in the amount of $140,000 on behalf of a husband-and-wife guarantor pair. The business had closed following a prolonged decline in revenue, leaving the borrowers personally liable for the remaining balance.

After conducting a comprehensive financial analysis and preparing a detailed SBA Offer in Compromise (SBA OIC) package, we negotiated directly with the SBA and the lender to achieve a settlement for $70,000 — just 50% of the outstanding balance. This settlement released the borrowers from further personal liability and allowed them to move forward without the threat of enforced collection.

$50,000 SBA 7A LOAN - RESPONSE TO SBA OFFICIAL 60-DAY NOTICE

$50,000 SBA 7A LOAN - RESPONSE TO SBA OFFICIAL 60-DAY NOTICE

Client received the SBA's Official 60-Day Notice for a loan that was obtained by her small business in 2001.  The SBA loan went into default in 2004 but after hearing nothing from the SBA lender or the SBA for 20 years, out of the blue, she received the SBA's collection due process notice which provided her with only one of four options: (1) repay the entire accelerated balance immediately; (2) negotiate a repayment arrangement; (3) challenge the legal enforceability of the debt with evidence; or (4) request an OHA hearing before a U.S. Administrative Law Judge.

Client hired the Firm to represent her with only 13 days left before the expiration deadline to respond to the SBA's Official 60-Day Notice.  The Firm attorneys immediately researched the SBA's Official loan database to obtain information regarding the 7(a) loan.  Thereafter, the Firm attorneys conducted legal research and asserted certain affirmative defenses challenging the legal enforceability of the debt.  A written response was timely filed to the 60-Day Notice with the SBA subsequently agreeing with the client's affirmative defenses and legal arguments.  As a result, the SBA rendered a decision immediately terminating collection of the debt against the client's alleged personal guarantee liability saving her $50,000.

Read more Case Results

Related Content

Read more sba debt articles