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. When the borrower has a bank loan, that is guaranteed by a certain SBA, and one has defaulted, then the borrower has that option to seek for protection by filing bankruptcy. However, the SBA has that option of allowing that defaulted borrower to make such OIC instead of filing 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. You must know that the amount of the deficiency is really a huge factor to know the settlement amount. There may actually a belief that the SBA would go for 20 percent, there is really no magic percentage that the SBA would want to accept for SBA loan settlement negotiation.
The borrower must have that desire to stop or avoid filing for bankruptcy. Well, it is quite important that you have a good SBA loan default attorney for this matter. Be aware that filing for that BK would come with a hidden cost. You have to keep in mind that operating in the business world is not easy at all when the borrower is going to file for BK and there are complications that one may have to face too. 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 will be able to find a really good lawyer through 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.
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