So your enterprise failed, and now the bank is asking about your personal assets as a way of collecting on the personal certify you signed. What do you do? Well one choice is to get ready and submit an Offer In Compromise (Oic). What is this? It is a course that the Sba has for a defaulted borrower to make an offer that is less than the full estimate of the estimate owed on their personal guarantee. However, it's not so uncomplicated to do...
The Sba created the Oic process as a means of collecting Some money from a borrower's personal guarantee, even if the borrower doesn't have the quality to pay the full estimate owed. This process is called the Offer In Compromise (submitted using the Sba 1150 form).
Sba Loan
However, it's not so simple. The process is convoluted. The Oic is approved by the Sba, but must be submitted by your local banker. In addition, your local banker must endorse your Oic, even though the local bank gets very little from the Oic proceeds (any money you pay goes primarily to the Sba). In fact, your local bank would most likely prefer you contend bankruptcy. It is easier, requires less paperwork, and allows the bank to write-off the loan quicker.
The key to a victorious Oic submission is to win the withhold of the local bank. This is done by cooperation and full disclosure, and most importantly, by forming a association with the banker. Question is, this is difficult for the borrower to do. It's like defending yourself in court and needing to win the judge over to your point of view. It's very difficult to be the borrower and tell the bank, "I can't afford anything more than $X", when the banker is asking for $Y. It's much more productive for a third party to be the intermediary and negotiate a fair settlement. In addition, the paperwork needed is extensive, and having a third party aid in establishment and submitting the paperwork so it is most convenient for your position is tremendously helpful.
Sba Offer In Compromise (Oic) - How to Submit for Approval Sba Loan
No comments:
Post a Comment