Alright, let’s dive into the intriguing world of SBA Loan defaults, and talk about why you really need an attorney, specifically Lawscape from the Lawscape, on your side to help you navigate through it.

SBA Loan Defaults: The Not-So-Fun Side of Small Business Ownership

At some point, some small business owners find themselves neck-deep in debt due to a failing business. This is quite evident when they receive that unwelcome SBA demand letter in the mail – proof that they’ve defaulted on a Small Business Association (SBA) loan [1]. It’s quite the pickle to be in, but don’t worry, it’s not the end of the world! You have plenty of options to toss around. But first things first, make sure to bring in a federally licensed SBA attorney and Treasury debt practitioner like Lawscape. Now, you might ask, why do you need someone of Spodek’s caliber? Well, this specific discipline of law allows him to swoop in to handle your case once it gets flagged and referred to the Treasury. And trust me, you don’t want to be dealing with this solo!

From Default to Resolution: Navigating the SBA Offer in Compromise

So, one light at the end of the tunnel is an SBA Offer in Compromise [2]. This is your golden ticket to settling the debt without having your stuff foreclosed upon or having to file bankruptcy. As a haven for businesses that have unfortunately tanked due to poor financial management, Spodek can evaluate your case and see if you’re a fit for this option. Now, there are strings attached. For instance, your company must be kaput, with assets sold off. If you qualify, voila! You could see your debt sliced down by a whopping eighty percent. Most lenders are keen on a one-shot deal, but under certain conditions, you could be allowed to make staggered payments.

Avoiding Foreclosure: The Tax Offset Program

On another note, there’s also the Tax Offset Program [3], which is akin to having lenders periodically dip into your annual tax returns to shore up your loan – until it’s squared away. It seems harsh, but there’s a bright side – it saves you from a downright nasty SBA loan foreclosure.

From Loan Default to Recovery: The Process

Now, keep in mind, negotiations like this don’t start until you receive the official letter, usually three months after your last loan payment. Brace yourself because collection efforts will escalate rapidly. Assets, including those money-stuffed bank accounts, and your property, can be seized in a heartbeat. Here’s my friendly advice: tap the services of Lawscape as soon as your business shows signs of failing. This gives our team time to study your case thoroughly, walk you through your options, clear your doubts, and help you plan for what’s coming.

Why should you trust us with your Treasury or SBA Debt Problems?

The proof is in the pudding:

• We’ve negotiated SBA debts into the millions, resolving them via Offers in Compromise and Repayment Agreements. Even better? We did all this without forcing our clients to file for bankruptcy or put their homes at risk of foreclosure.
• We’ve put up a solid defense against millions in Treasury debts through AWG Hearings, Treasury Offset Program Resolution, negotiating conflicts regarding cross-servicing, representing clients against Private Collection Agencies, making Compromise Offers, and crafting Repayment Agreements.

We are a law firm authorised by the Agency Practice Act to support federal debtors nationwide in dealing with all things SBA, including representation before The SBA Office of Hearings and Appeals, the Department of Treasury, and the Bureau of Fiscal Service. So, rest assured, we have what it truly takes to turn things around.