Things to Know Regarding the SBA Offer in Compromise Settlement Amount
You have to know that the answer to such is quite complicated. It is known by different factors that you must know here. If the borrower has such bank loan, which is guaranteed by the SBA, would go into default, then the borrower has such option of seeking protection through filing bankruptcy. 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. How such SBA would decide this is frequently confusing and would feel like they use black-magic to figure such out and is quite dependent on the person who is reviewing the file. But, there are those guidelines that you should click for details and more info.
You should know that in order to put that right OIC, then a few criteria should be followed. The size of deficiency should be known. That amount of the deficiency is really an obvious factor when it comes to knowing such settlement. There can be those who think that the SBA would opt for 20 percent to recover, there is really no magic percentage which the SBA would be willing to get for SBA loan settlement negotiation.
Moreover, the borrower should make a way to prevent bankruptcy. In order to address this, there should be a good SBA loan default attorney. You must know that filing a BK comes with a hidden cost. Operating in such business world is complicated if the borrower would file for BK and such complications may cost real money over ten years that a BK is reported on that credit report. When the settlement cost is much higher than this, the borrower should opt for protection with bankruptcy.
To know the settlement amount, then you should find an attorney in order to know more. There are a lot of loan attorneys which you can speak of so that you will get to know more regarding the SBA OIC settlement amount. You can find such great lawyer with the Protect Law Group. There are many things that you have not understood yet so it is just right that you speak with the SBA loan attorneys in order to have a better understanding on such matter.