How to Determine SBA Offer in Compromise Settlement Amount
You must know that such answer to this is quite complicated. The settlement amount is determined by different factors. 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. But, the SBA has such option of allowing such defaulted borrower to make that OIC in lieu of filing Chapter 7 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 need to put such acceptable OIC and this is known through some general criteria. One is that the size of such deficiency should be determined. The amount of such deficiency is quite an obvious factor in determining that settlement. But, while there is such belief that the SBA would look to get a twenty percent recover, there is certainly no magic percentage which the SBA is going to accept 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. Be aware that filing for that BK would come with a hidden cost. You have to keep in mind that operating in the business world is not easy at all when the borrower is going to file for BK and there are complications that one may have to face too. 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.