SBA OIC Settlement Amount and What You Should Know About This
You have to be aware that things related to this can be very complicated. The settlement amount is determined by different factors. If a borrower has a certain bank loan which was guaranteed by the SBA and there was a default made, then the borrower can get a protection by going for bankruptcy filing. But, the SBA has such option of allowing such defaulted borrower to make that OIC in lieu of filing Chapter 7 bankruptcy.
The borrower must know that the SBA offer in compromise is one privilege and not a right and the SBA is actually in no obligation to get an OIC and will do so when the SBA feels that it is a good offer and there is no concealment, fraud or misrepresentation. The manner of which the SBA would decide on such is usually confusing and would also feel like they are using this form of black magic to be able to know such and is also dependent on the person who would go through the file. Try to click for details and also for you get more info.
You should know that in order to put that right OIC, then a few criteria should be followed. One is that the size of such deficiency should be determined. The amount of such deficiency is quite an obvious factor in determining that settlement. But, while there is such belief that the SBA would look to get a twenty percent recover, there is certainly no magic percentage which the SBA is going to accept for SBA loan settlement negotiation.
The borrower must have that desire to stop or avoid filing for bankruptcy. In order to address this, there should be a good SBA loan default attorney. You need to know that filing for BK has a hidden cost. Operating in the business world is really complicated when the borrower would file for this and the complications can make one spend a lot of money on the 10 years that BK would be reported on such credit report. When the settlement cost is much higher than this, the borrower should opt for protection with bankruptcy.
So that you will get to know the settlement amount, then you must search for a good attorney to know more. There are several loan attorneys that you can talk to so that you can know more about the SBA OIC settlement amount. You can find such great lawyer with the Protect Law Group. You should speak with the SBA loan attorneys so that you will be able to get the information that you must know.