SBA OIC Settlement Amount and What You Should Know About This
You must know that such answer to this is quite complicated. The settlement amount is determined by different factors. 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. However, the SBA has that option of allowing that defaulted borrower to make such OIC instead of filing bankruptcy.
Such borrower should be aware that the SBA offer in compromise is actually a privilege and this is not a right and the SBA is not obligated to get the OIC and will do this when the SBA feels that such is a good offer and there is no misrepresentation, fraud or concealment. 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. 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.
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.
It would be important that you find an attorney in order to get more knowledge when it comes to settlement amount. There are several loan attorneys that you can talk to so that you can 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.