SBA or Small Business Loan Debt
When you start a small business, you need the initial investment capital. Instead of using savings, many business owners are taking out small business loans usually via the Small Business Administration (SBA).Taking a small business loan has risks because of the unpredictable nature of business in the start up and the initial few years. Current economic conditions have made it even more unpredictable.
Initial debt upon start up can be very detrimental to a small business. Falling further into debt will accrue interest that you cannot afford. Instead of declaring bankruptcy, seek the advice of an experienced business debt relief lawyer. Our lawyers at ZocLaw.com are well versed in all aspects of business debt relief and have assisted many businesses create strategies to overcome burdensome debt.
Filing bankruptcy may have a negative effect on your credit score and it may be difficult to get loans in future. Fortunately, there are several other small business debt relief options apart from declaring bankruptcy.
Due to the most recent financial crises in the USA, many small business owners are defaulting on their SBA loan payments. SBA loans are issued by private institutions and backed by the Federal Government. These loans are secured by collateral. If you fail to pay the loan, the lender has the right to sell the collateral in order to recover funds.You are still liable for the difference if the sale of collateral cannot cover the total amount owing.
How Our SBA Attorneys Can Help
The key to financial freedom is getting rid of your small business debt. This means that you can focus more on your business. Our SBA attorneys can assist you with SBA debt settlement, SBA debt negotiation and filing a Chapter 11 bankruptcy.
An SBA Attorney Negotiated Settlement
Our SBA attorneys will negotiate with creditors and lower the balance of your debt on your behalf. Creditors will more likely give you a better deal if you are represented by an attorney. All communications from your creditors will be directed to your attorneys.
Solutions to SBA Debt Default
If your business is no longer operational and you have $ 20,000 or more in SBA debt, there is a solution called offer-in-compromise. To qualify for a reduction of the principal balance, the SBA will require all your financials and need to be convinced that this is all that you can offer.
When all financial statements and documents together with an offer are sent to the lender, the SBA and the lender may or may not agree to the proposal. The SBA and the lender must agree to a settlement and these negotiations may take some time. Do not wait for a long time after you have shut your business down to address your SBA loan debt. You want to negotiate when you have the least amount of assets. You need to engage an experienced attorney as soon as possible to and decide whether an offer-in compromise is the best solution for you. Schedule your free initial consultation with one of our lawyers today.