Completing an Offer in Compromise with Little Cash? No Problem!
Many clients have the wrong idea about their offer in compromise.
They believe that they need some gigantic sum of cash to get out of debt without a bankruptcy. I settled an Offer in Compromise yesterday for $6,500.00.
Not only is that less than ten percent of the debt, but it is also something most people can get together even without a business to rely on. The client simply has no excess cash reserves or family members to rely on.
The key to remember is that your offer needs only be greater than what they can collect through legal measures and YOU MUST PROVE IT! If you are worthless to sue, than whatever you offer is a good deal for the bank. In this case, we still needed to battle for a few months, but in the end the bank took our number, a number that had not changed since the first time we proposed it.
Calling and saying that my client is destitute is nothing that a bank or the SBA would listen to. They hear it all day, every day. Instead, I presented a complete financial package that bows the banker’s desk when it arrives. This offer outlines every facet of my client’s financial life and my offer enclosed. It is sort of like writing a paper in school. The cover letter is your opening paragraph, it is where the main ideas are outlined. The financials are the body of the document, they show the facts behind your suppositions. The offer is your conclusion, it is the end result of common sense, when applied to the document as a whole. The final nail in the coffin is the phone call after the package arrives. ”If there is any money to be found, let me know, and I will make sure we add it to the offer.” That is the line that I see the most success with. If the banker wants to tear through the package he will find there is no money to be found, but it leaves a better impression if you allow him to look. The banker sees this as his decision and is more likely to help it push through the SBA.
Another great success for Second Wind Consultants. $90,000.00 laid to rest for $6,500.00. That is a good day no matter how you slice it.
