What NOT to Do if You Are Facing an SBA Loan Default(0) Comment |
Essential Tips from Expert SBA Attorneys: A Comprehensive Guide to Avoiding Common Pitfalls When Facing an SBA Loan Default
A Troubling Scenario: Failing Businesses and Bankruptcy
Encountering the nerve-wracking situation of a failing business that spirals towards bankruptcy is never a walk in the park. Contrarily, adopting a passive approach and avoiding your lender will only intensify the issue. The quicker you act, the smoother it will be to settle your debts and get your life back on track. Protect Law Group is a team of highly-skilled and experienced SBA attorneys situated in California who excel in assisting business owners in settling their defaulted SBA loans. Below are several crucial points to keep in mind when wrestling with an SBA loan default.
Ditch These Damaging Actions When Confronting an SBA Loan Default
Avoid Ignoring Your Lender: Maintain Open Lines of Communication
Giving your lender the cold shoulder sends an unmistakable signal that you have no intention of paying back your debts. This negligence may trigger legal action or even worse, the relentless pursuit of the Small Business Administration (SBA), leading to severe repercussions like wage garnishment and the loss of your federal tax refund. Thus, sustaining steady communication while crafting a practical repayment plan with your lender is of paramount importance.
Refrain from Accumulating More Debt: Seek Alternative Solutions
While sinking further into the red, resorting to credit cards or pondering home equity loans to cover expenses will only worsen the dire situation. Rather than accumulating more liabilities, venture into other avenues like liquidating company assets or downsizing the business.
Don’t Sell Your Business Assets Without Consent: Obtain Necessary Permissions
Providing valuable assets to your lender undoubtedly accelerates the loan settlement process. However, irresponsibly selling off all business assets without consent leaves nothing for future endeavors, potentially causing even more financial turmoil. Hence, always request permission from lenders before selling any assets and engage them in negotiation towards devising mutually beneficial settlement agreements.
Steer Clear of Fraud: Embrace Transparency
Attempting deception or evading the watchful eyes of the federal government is an ill-advised move. Legal authorities possess extensive knowledge and are cognizant of the elaborate schemes devised by lenders and debtors. Therefore, maintain transparency with your lenders and the government while striving to reach a fair and equitable settlement agreement.
Why Choose Protect Law Group for Your SBA Loan Default Solutions?
Experience and Expertise: Our Powerhouse Legal Team Delivers Results
Our team of seasoned SBA attorneys boasts a wealth of experience in handling SBA loans, expertly guiding you through the labyrinthine legal process associated with defaulted loans. Offering long-lasting, tailor-made solutions to settle your debts while keeping your business solvent, we are your steadfast partner in these precarious times.
Affordability: High-Quality Legal Solutions That Won’t Break the Bank
Our competitive rates ensure that our top-tier services remain budget-friendly without compromising quality. We are driven to provide cost-effective legal assistance to help clients navigate this daunting financial journey.
Authorized Representation: Experts You Can Trust
Our highly-qualified lawyers hold authorization to represent federal debtors on SBA loans and Treasury debts at a national level, as sanctioned by the Agency Practice Act before the Small Business Administration (SBA), Treasury Department, Bureau of Fiscal Service, or Office of Hearings & Appeals (OHA).
Successful Debt Settlements: A Track Record of Triumphs
We have adeptly resolved millions of dollars in SBA debts through various methods, including Offer in Compromise, Negotiated Repayment Agreements, and other viable alternatives. Our legal team has consistently aided clients in settling their SBA and Treasury debts without resorting to bankruptcy, foreclosing homes, or succumbing to other adverse outcomes.
In Conclusion: Defaulted SBA Loans Far from the End
A defaulted SBA loan doesn’t signal the death knell for businesses; the light at the end of the tunnel exists in the form of expert attorneys, like those at Protect Law Group. They are equipped to devise robust, viable solutions that enable swift debt settlement. Remember, evading lenders or worsening your financial situation only serves to dig a deeper hole. Instead, act with purpose and collaborate with experienced, authorized legal representatives to traverse the complex debt resolution process effectively.