SBA Offer in Compromise

[Mik3]

Where can I find some resulting examples of the outcomes of such action? I'm curious about things like settlement amounts on 7a loan balances, home equity value, and that sort of thing.

[SWConsultant]

Mik,

The SBA Offer in Compromise is something I specialize in. It is difficult to give you specific examples without breaching confidentiality but what I can tell you is that the SBA Offer in Compromise typically goes as follows:

1. The business borrowed the debt and the business owner simply guaranteed the debt - therefore the business must be liquidated before an offer can be completed.
2. Once the business is liquidated, the shortfall of the loan will then fall onto the Personal Guaranty.
3. From there, the SBA will allow you to put forth an Offer in Compromise based off of your liquidated net worth.

The difficult part about this is that, while the Offer in Compromise program is of great benefit for many people, most will not be able to successfully navigate the necessary steps in order to complete the package. The SBA has specific forms which must be completed accurately, and submitted with a variety of supporting documentation before the offer is even reviewed.

The key is in putting together the appropriate package that contains all relevant SBA documents, all relevant supporting documents, and that contains an offer that is within SBA guidelines for an acceptable offer. For example: most people dont know that the SBA will accept term settlements for a duration of up to 60 months with no interest. I suggest getting some third party help with this to assure you are doing it properly. If done incorrectly, your offer could be rejected and then the debt will be collected by the Department of Treasury - thats a situation you want to avoid.

Typically my clients will resolve their PGs for between 3%-5% of the outstanding balance. However this is based off of their individual financial conditions. Each case is different. Some of out client will pay 30% of the debt owed due to their financial standing. If you have further questions, feel free to message me directly.

[tobee43]

where's the spam guards when we need them VALLE!!!!!! KEEP!!!!!!!! where are you!!!

[SWConsultant]

For those of you who want the appropriate SBA forms . They are available on the SBA website along with some other information about putting together an offer. The forms are the SBA form 770 and 1150. If filed with the lender and SBA, this will begin the offer in compromise process.