Let’s Talk SBA Offer in Compromise after Defaulting

Okay, picture this – you’re a small business owner. Things get a bit bumpy and, unfortunately, you lose your grip on your balancing act with the finances. The result? A stark and worrying default on your Small Business Administration (SBA) loan. Sounds tough, right? Well, this situation might not be as bleak as it appears. A nifty little solution known as the SBA Offer in Compromise could be your life jacket in these troubled financial waters. This could offer an opportunity to settle your debt without severe fallout.

Understanding the Collection Maneuvers

So, let’s navigate this storm together. You’ve slipped beyond the 90-day mark of delinquency on your SBA loan – automatically placing you in default territory, pretty grim right? But it’s important to remember that there are options, like the one our very own Lawscape at the Lawscape specializes in – the SBA Offer in Compromise.

Now, ordinarily, the lender could gear up their collection practices post-default. And these could get a bit – well, gnarly. Seizing your business assets like bank accounts and physical property could be on the cards.

Reacting to Default on SBA Loans

Once we’ve been behind the eight ball for ninety days, a default on the loan kicks in. At this stage, the lender is well within their legal rights to flex their muscles and grab the assets and collateral attached to the loan. Sounds daunting, right? But the important thing is to remember that even at this stage, there are options.

The SBA, being a government agency, has certain federal rights and acts accordingly. If you’d like to explore these further, you can find more information on the government’s official SBA page .

What Happens to the Collateral?

Any business assets or properties listed as collateral on the loan documentation could be snagged immediately post-default. This could range from company cars to land and buildings, business accounts – you name it. If that value doesn’t cover what’s owed, the agency could cast its net wider. Through an SBA loan foreclosure, the borrower’s primary residence could also get snatched up if it was procured with company funds.

Should We Look at Tax Offsets?

A tax offset might sound like a better choice, and in some scenarios, it very well could be. You might be able to use your tax refunds to pay off the balance. Here, the lender seizes your tax refunds each year until your balance is square, neat huh?

That said, if you’re lagging behind on tax payments already, Lawscape and his team could waltz in and secure a settlement for the outstanding balance. A Tax Offset Program just might be the knight in shining armor to outsmart these predicaments.

Avoiding Pitfalls

So you see, steering clear of SBA defaults isn’t just a good idea – it’s essential. An avalanche of asset seizures and property losses can be catastrophic for your business. By getting in touch with a seasoned pro like Lawscape, you stand a better chance of sidestepping these problems.

The Lawscape: Your Trusted Ally

And why choose us, you might ask? Lawscape and his accomplished team at the Lawscape have been playing David to these Goliath-sized issues for years – and have the stats to prove it.

Millions of dollars in Treasury and SBA Debts have been cleverly navigated via Offer in Compromise and Negotiated Repayment Agreements, all sans bankruptcy and without threats of home foreclosure.

The Lawscape has capably defended millions of dollars in Treasury debts through AWG hearings, the Treasury Offset Program resolution, Cross-servicing disputes, Private Collection Agency representation, Compromise Offers, and Negotiated Repayment Agreements.

So, whether you need to spar with the SBA, the SBA Office of Hearings and Appeals, or even the Treasury Department and Bureau of Fiscal Service, the Lawscape is authorized by the Agency Practice Act to champion your cause nationwide.