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Who Qualifies for an SBA Loan Deferment
Learn who qualifies for an SBA loan deferment as well as when. Your frequently asked questions answered in one handy guide.
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.
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.
If a person needs a debt help lawyer to assist with an SBA loan foreclosure, they can start in the following places.
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.
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 to help with a relative’s new business venture. After the business failed, Treasury was able to secure a recurring Treasury Offset Program (TOP) levy against his monthly Social Security Benefits based on the claim that he owed over $1.2 million dollars. We initially submitted a Cross-Servicing Dispute, but then, prepared and filed an Appeals Petition with the SBA Office of Hearings and Appeals (SBA OHA). As a result of our efforts, we were able to convince the SBA to not only terminate the claimed debt of $1.2 million dollars against our client (without him having to file bankruptcy) but also refund the past recurring amounts that were offset from his Social Security Benefits in connection with the TOP levy.
Client personally guaranteed SBA 7(a) loan balance of over $150,000. Business failed and eventually shut down. SBA then pursued client for the balance. We intervened and was able to present an SBA OIC that was accepted for $30,000.
Clients obtained an SBA 7(a) loan for $324,000 to buy a small business and its facility. The business and real estate had an appraisal value of $318,000 at the time of purchase. The business ultimately failed but the participating lender abandoned the business equipment and real estate collateral even though it had valid security liens. As a result, the lender recouped nearly nothing from the pledged collateral, leaving the business owners liable for the deficiency balance. The SBA paid the lender the 7(a) guaranty money and was assigned ownership of the debt, including the right to collect. However, the clients never received the SBA Official 60-Day Notice and were denied the opportunity to negotiate an Offer in Compromise (OIC) or a Workout directly with the SBA before being transferred to Treasury's Bureau of Fiscal Service, which added an additional $80,000 in collection fees. Treasury garnished and offset the clients' wages, federal salary and social security benefits. When the clients tried to negotiate with Treasury by themselves, they were offered an unaffordable repayment plan which would have caused severe financial hardship. Clients subsequently hired the Firm to litigate an Appeals Petition before the SBA Office & Hearings Appeals (OHA) challenging the legal enforceability and amount of the debt. The Firm successfully negotiated a term OIC that was approved by the SBA Office of General Counsel, saving the clients approximately $205,000.
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