How to Determine SBA Offer in Compromise Settlement Amount
You must know that such answer to this is quite complicated. It is known by different factors that you must know here. 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 must know that the SBA offer in compromise is a kind of privilege and such is actually not a right and the SBA is not obligated to have such OIC and will do so if the SBA feels that this is a great offer and there is also no fraud, concealment or any other problem. How such SBA would decide this is frequently confusing and would feel like they use black-magic to figure such out and is quite dependent on the person who is reviewing the file. However, there are actually guidelines which you must click for details and to 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. The amount of such deficiency is quite an obvious factor in determining that settlement. There can be those who think that the SBA would opt for 20 percent to recover, there is really no magic percentage which the SBA would be willing to get for SBA loan settlement negotiation.
Moreover, the borrower should make a way to prevent bankruptcy. In order to address this, there should be a good SBA loan default attorney. Be aware that filing for that BK would come with a hidden cost. Operating in the business world is really complicated when the borrower would file for this and the complications can make one spend a lot of money on the 10 years that BK would be reported on such credit report. But, if such settlement cost is higher than this, as in such case of the lawyer, the borrower must seek 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. You should speak with the SBA loan attorneys so that you will be able to get the information that you must know.