How to Determine SBA Offer in Compromise Settlement Amount
You have to know that the answer to such is quite complicated. It is known by different factors that you must know here. If a borrower has a certain bank loan which was guaranteed by the SBA and there was a default made, then the borrower can get a protection by going for bankruptcy filing. But, the SBA has such option of allowing such defaulted borrower to make that OIC in lieu of filing Chapter 7 bankruptcy.
The borrower must know that the SBA offer in compromise is one privilege and not a right and the SBA is actually in no obligation to get an OIC and will do so when the SBA feels that it is a good offer and there is no concealment, fraud or misrepresentation. The manner of which the SBA would decide on such is usually confusing and would also feel like they are using this form of black magic to be able to know such and is also dependent on the person who would go through the file. But, there are those guidelines that you should click for details and more info.
You need to put such acceptable OIC and this is known through some general criteria. One is that 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.
The borrower must have that desire to stop or avoid filing for bankruptcy. In order to address this, there should be a good SBA loan default attorney. You need to know that filing for BK has a hidden cost. Operating in such business world is complicated if the borrower would file for BK and such complications may cost real money over ten years that a BK is reported on that 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.
To know the settlement amount, then you should find an attorney in order to know more. 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. In order to have the right information which you would like to know, then it is quite essential that you speak with such SBA loan attorneys.