Small business owners review possible outcomes when they are informed of an impending foreclosure. This legal action allows their lender to take possession of their property. Once the lender acquires the property, it is sold to the highest bidder. This presents the borrower with the outstanding balance. However, an SBA Offer in Compromise may prevent these circumstances.
The adverse impact of the foreclosure starts with a negative listing on the owner's credit. Foreclosure prevents them from acquiring a more beneficial loan for a new business location. It also leads to an outstanding balance listed on all three credit reports. This leads to more difficulties for the business owner. The offer in compromise reduces the impact of foreclosure.
An SBA loan foreclosure begins when the government lender issues the SBA demand letter. These loans are backed by the government and require the borrow to pay at specific value to settle the loan. This value is based on the percentage listed in the loan contract.
Tax liens present more issues and could lead to further seizure of assets. The attorney helps the business owner through a Tax Offset Program. The program provides the owner with a reduced value acquired through a settlement. The value is under fifty percent of the total value owed in most cases. Select circumstances may provide a payment plan for these tax requirements.
Owners that avoid traditional foreclosure eliminate credit issues. This helps them acquire further funding in the future when their venture becomes profitable. They may also start a new company in a new location after the settlement is paid in full. The attorney provides them with advice for restructuring their credit.
Small business owners avoid negative outcomes when they are facing foreclosure. Owners who acquire government-secured loans identify benefits of these programs through an attorney. This helps them to avoid severe damage to their credit. Small business owners who need help after an SBA loan default should contact an attorney to schedule a consultation 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.
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.
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.
Clients' 7(a) loan was referred to Treasury's Bureau of Fiscal Service for enforced collection in 2015. They not only personally guaranteed the loan, but also pledged their primary residence as additional collateral. One of the clients filed for Chapter 7 bankruptcy thinking that it would discharge the SBA 7(a) lien encumbering their home. They later discovered that they were mistakenly advised. The Firm was subsequently hired to review their case and defend against a series of collection actions. Eventually, we were able to negotiate a structured workout for $180,000 directly with the SBA, saving them approximately $250,000 (by reducing the default interest rate and removing Treasury's substantial collection fees) and from possible foreclosure.
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