How Do I Stop an Administrative Wage Garnishment?
Do you want to know more about how to stop an administrative wage garnishment but don't know where to start? Learn more here.
Most people start their own business with the highest of hopes. Many times, to fund a new business, a person will receive a loan through the SBA (Small Business Administration). While these loans are administered through the SBA, they are often facilitated by individual lenders. However, if a small business taking out one of these loans was to encounter financial disaster, which causes the business close, there would likely be an issue with SBA loan default
In many of these instances, lenders will try to close the books on a particular loan by something known as an SBA Offer in Compromise. This is an agreement between the lender and the borrower to repay a portion of the loan when full repayment isn't possible. The problem that many small businesses face is dealing with the SBA OIC claim form, as well as dealing with a less than a reputable lender. This is where attorneys may be helpful to the individual or business that initially took out the SBA loan.
Often, when the loan is in default, the business or the business owner will receive an SBA demand letter. This is where the offer in compromise process should begin. An attorney can help negotiate with the lender to achieve the best terms for the offer in compromise. What this does is cleans the slate and allows the owner to walk away from the loan having it settled and not having it existing on the owner's credit report.
However, SBA loan foreclosure can also provide an opportunity for an attorney to mitigate the default in a different manner. The fact is that there has been significant issues with predatory lending in the small business administration loan process. There are many lenders that have used improper tactics and submitted loans with less than equitable fees and interest rates. If a small business feels as if this is the case with their lender, an attorney can investigate this issue and can bring these issues before the Small Business Administration.
Whether it's a Tax Offset Program, a delicate negotiation for an offer in compromise or if it's uncovering predatory lending practices, having an SBA loan attorney is essential. While it's never fun to attend to things after a business idea has failed, this is one way to ensure that there are less financial repercussions after everything is said and done.
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.
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.
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.
Clients obtained an SBA 7(a) loan for their small business in the amount of $298,000. They pledged their primary residence and personal guarantees as direct collateral for the loan. The business failed, the lender was paid the 7(a) guaranty money and the debt was assigned to the SBA. Clients received the Official 60-Day Notice giving them a couple of options to resolve the debt balance directly with the SBA before referral to Treasury's Bureau of Fiscal Service. The risk of referral to Treasury would add nearly $95,000 to the SBA principal loan balance. With the default interest rate at 7.5%, the amount of money to pay toward interest was projected at $198,600. Clients hired the Firm with only 4 days left to respond to the 60-Day due process notice. Because the clients were not eligible for an Offer in Compromise (OIC) due to the significant equity in their home and the SBA lien encumbering it, the Firm Attorneys proposed a Structured Workout to resolve the SBA debt. After back and forth negotiations, the SBA Loan Specialist assigned to the case approved the Workout terms which prevented potential foreclosure of their home, but also saved the clients approximately $294,000 over the agreed-upon Workout term with a waiver of all contractual and statutory administrative fees, collection costs, penalties, and interest.
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