SBA OIC Settlement Amount and What You Should Know About This
You must know that such answer to this is quite complicated. There are several factors which affect the settlement amount. 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. The way that the SBA would decide on this is often confusing and would feel like they are using such form of black magic to know this and is reliant on the person who is going through the file. Try to click for details and also for you get 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. 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.
Moreover, the borrower should make a way to prevent bankruptcy. Well, it is quite important that you have a good SBA loan default attorney for this matter. 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.
So that you will get to know the settlement amount, then you must search for a good attorney 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. 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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