How to Determine 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. 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. But, there are those guidelines that you should click for details and more info.
You need to put such acceptable OIC and this is known through some general criteria. One is that 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 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.
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. You need to know that filing for BK has 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 many loan attorneys that you may talk to so that you will be able to know more about the SBA OIC settlement amount. You may find a good lawyer with the help of 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.
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