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.
Small businesses that are facing financial difficulties need help through legal services. These opportunities could prevent them from losing their business location and possibly their machinery used by their company. When serious delinquencies arise, these businesses have the opportunity to acquire an SBA Offer in Compromise
After the company defaults, the business owner could face foreclosure. This legal process allows the lender to seize the property financed by the loan. If the process continues, the lender will auction the property off and collect through the sale. If they don't recover the full balance of the loan, the lender could file a claim against the borrower through the court. For this reason, the borrower must take action as soon as an SBA loan default begins.
A loan default gives the lender the right to collect the collateral immediately. Once they collect the collateral, the foreclosure or repossession of the property appears on the borrower's credit report. This listing could lead to a reduction in the credit score. A lower credit score could prevent the borrower from starting new lines of credit. This includes new loans to recover from any financial losses. Once the borrower receives the SBA demand letter these circumstances are immediate.
The first step is to approach an attorney. The attorney evaluates the SBA loan documentation to determine if the terms of the loan are predatory. They determine if it is possible to acquire a loan modification first. If this action could settle the issue, the attorney continues with the process. However, if it is necessary to arrive at a settlement, the attorney submits the application for the offer in compromise to prevent an SBA loan foreclosure.
Small business owner evaluates opportunities to avoid foreclosure by consulting an attorney. An attorney could help them evaluate opportunities to settle their SBA loan debt. Among these opportunities are loan modifications and an offer of compromise. These actions reduce the negative impact of a default and prevent further financial damage for the business owner. Any owners who need a Tax Offset Program or additional help 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.
The clients are personally guaranteed an SBA 7(a) loan. The SBA referred the debt to the Department of Treasury, which was seeking payment of $487,981 from our clients. We initially filed a Cross-Servicing Dispute, which was denied. As a result, we filed an Appeals Petition with the SBA Office of Hearings and Appeals asserting legal defenses and supporting evidence uncovered during the discovery and investigation phase of our services. Ultimately, the SBA settled the debt for $25,000 - saving our clients approximately $462,981.
The client personally guaranteed an SBA 504 loan balance of $375,000. Debt had been cross-referred to the Treasury at the time we got involved with the case. We successfully had debt recalled to the SBA where we then presented an SBA OIC that was accepted for $58,000.
Our firm successfully assisted a client in closing an SBA Disaster Loan tied to a COVID-19 Economic Injury Disaster Loan (EIDL). The borrower obtained an EIDL loan of $153,800, but due to the prolonged economic impact of the COVID-19 pandemic, the business was unable to recover and ultimately closed.
As part of the business closure review and audit, we worked closely with the SBA to negotiate a resolution. The borrower was required to pay only $1,625 to release the remaining collateral, effectively closing the matter without further financial liability for the owner/officer.
This case highlights the importance of strategic negotiations when dealing with SBA settlements, particularly for businesses that have shut down due to unforeseen economic challenges. If you or your business are struggling with SBA loan debt, we focus on SBA Offer in Compromise (SBA OIC) solutions to help settle outstanding obligations efficiently.
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