SBA Offer in Compromise - A Way For You To Settle Your Debts
There are times when you really need to make a hard decision and closing your business down could be one of those difficult but best decisions. However, you need to ask yourself what you are going to do next after closing your business down.
Before you think about closing the business you worked hard to build, a plan is something really important for you to establish. Working with your bank is usually what that plan is. The SBA demand letter you have would presumably have been secured with the assets of your business.
Everything that is considered to be a business asset is included like ovens, tables and chairs, sinks, equipment and fixture. The first thing the bank will want to do before they talk to you about settling your debt is to liquidate all the collateral. In this matter, there will be one exception and that is your primary residence.
Getting in contact with your bank and letting them know the reasons why you have decided to close your business is something you need to do and express to them that in however way possible, you will do your best to cooperate with them. You need to know that finding out the value of your assets is something the bank will be doing and they will be using whatever funds they get from selling your assets to settle your loan balance. Know more about attorney in http://dictionary.reference.com/browse/attorney.
The only time you will become eligible for Offer in Compromise (OIC) submission to the SBA is after you business have been closed and all your business assets have already been liquidated. When you submit an Offer In Compromise through your lender, this process will then be usually accomplished. Prior to being forwarded to the SBA, the lender will be reviewing your Offer In Compromise first.
The degree of how much you have been cooperative with your bank is something that the SBA will want to know so remember to play nice with them at all times. Remember that in your OIC offer, the amount of equity in your home should be covered and don't forget about the fact that your house is being held as collateral. If that is something you are not able to offer then most likely the offer you made will be rejected by the SBA. Visit www.sba-attorneys.com to understand more about SBA attorney.
If the SBA approves your offer, you will just have to pay the amount you agreed in settlement of your debt, only then will all the liens on your home as well as your personal guaranty will be released by the SBA. If the entire amount of the OIC hasn't been paid yet then the releases will not yet come.