HomeSBA Loan Default: Bankruptcy

SBA Loan Default: Bankruptcy

We Reduce Business Debt

Lawscape is dedicated to helping business owners successfully resolve their business debt without headaches, or long term consequences.

We Provide Nationwide Business Debt Relief

Lawscape provides nationwide business debt relief services. We work a wide array of lenders, service providers, and types of business debt. We are able to restructure and reduce, all types of secured and unsecured business debt. 

Millions of Dollars in Debts

Our team has experience handling 10’s of millions in debt, ranging from SBA debt, to Merchant Cash Advance and more. 

All Types Of Debt

Regardless of the type of business debt you have, we can help. We have experience handling all types of secured and unsecured business debt. 


Our company is led by experienced business debt relief experts who have experience handling secured and unsecured debt nationwide. 

Failing To Repay Business Debt Isn’t The End

Many business owners think failing to repay business debt means: your business is over.

This simply isn’t true. Business debt is a problem which CAN be handled, just like everything else; but only if you take pro-active steps. Lawscape helps you understand the law, and works with you to make sure that business debt isn’t the end of your business. 

What Are Some Ways We Can Help With Business Debt Relief?

Our experienced business debt relief consultants are here to help you through this stressful time. 

Sure thing, let’s break down this situation together. Imagine you’re knee-deep in SBA debt, and you feel like you’re wading upstream. Well, there’s good news. You don’t have to carry that weight alone. Our able hands at Lawscape can help lift this burden off your shoulders. We’re well versed in handling SBA OIC claims – and frankly, it’s our bread and butter.

Contemplating Bankruptcy? Think Twice

I see how you might be considering bankruptcy when dealing with an SBA loan default. Although, might I add, taking SBA OIC route to settle SBA debt can sometimes work out better, saving you some serious headaches.

The Downside of Chapter 7 – It Stings More Than a Bee

Chapter 7 bankruptcy comes with its fair share of drawbacks:

  1. It can do a serious number on your credit report and could dampen your prospects of securing attractive credit terms.
  2. A bankruptcy trustee will seize control of your finances and debts, maintaining a tight grip from the moment of filing until the case is discharged. You’re at their mercy, unfortunately.
  3. If you’re a Sole Proprietor or a Partnership, bankruptcy could drive you out of business due to associated costs and continual pressure.
  4. If you count sizeable nonexempt personal property or equity in secured assets, you might see your wealth shrink noticeably.

The Dark Side of Chapter 11 – It’s Not Always The Answer

Chapter 11 has its own set of disadvantages:

  1. A seal of approval on your reorganization plan does not come quickly or cheaply.
  2. You could find yourself on the receiving end of assertive and aggressive creditors. The ensuing flurry of lawsuits in the bankruptcy proceeding makes it agonizingly long and costly. These cases typically start at $50,000 and upfront fees can amount to $20,000 or more.

Final Musings on Bankruptcy

The “Invisible” Price Tag

But, hold up a second, there’s more. Bankruptcy carries an often overlooked cost. Remember, your business’s operating landscape will change once you file for bankruptcy. It gets messy, and these disruptions can end up costing quite a bit over the 10 years that bankruptcy is reported on a credit report. A ballpark figure is around the $75,000 – $125,000 mark.

To put it in simpler terms, if an SBA debtor can square away an OIC settlement for less, they should definitely consider going down that path, aiming for an SBA OIC or DOT compromise. However, if the costs of the compromise settlement run higher than the “invisible” bankruptcy costs, then sheltering under the umbrella of a bankruptcy might be a better bet.

Here’s a handy link to a video that expands on SBA loan default and bankruptcy.

Why Us? Straight From The Lawscape Kitchen

Well, our track record does speak volumes. Over the years, we’ve managed to resolve millions of dollars in SBA debts through Offer in Compromise and Negotiated Repayment Agreements. The cherry on top? Our clients didn’t have to resort to bankruptcy or risk losing their homes.

On top of that, we’ve defended millions of dollars in Treasury Debts through AWG Hearings, Treasury Offset Program Resolution, Cross-servicing Disputes, Private Collection Agency Representation, Compromise Offers, and Negotiated Repayment Agreements.

Backed by the Agency Practice Act, the adept attorneys at the Lawscape are authorized to represent Federal Debtors Nationwide before the SBA, The SBA Office of Hearings and Appeals, the Treasury Department, and the Bureau of Fiscal Service. So, rest assured, you’re in good hands.

Lawscape Can Help You Manage Your Business Debt

If you’re struggling with business debt, we can help you understand your situation. During the initial consultation, we’ll go over the contract, and other legal documents you signed. After that, our firm will work with you to get a better understanding of your situation, and help you come up with a game plan that keeps your business alive. 

We Handle It All


Merchant Cash Advance


SBA Debt Relief


Secured Business Debt


Unsecured Business Debt

Everyone has different types of business debt. What matters is that you take it seriously. Regardless of whether it’s secured, or unsecured, you need to work with a firm that understands how to negotiate, reduce, settle, and manage, this business debt. 

Discuss your situation today

We are here to help you, and want nothing more than to help you save your business. Speak to our business debt relief specialists today.

Contact information

Call us today for a risk free consultation.

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