$1.5 Million Settled for $50K!!

Another amazing result out of this office.  We were able to do the unthinkable.  A client of mine was left with a 1.5 million dollar note that she owed a bank and the SBA.  Through cooperation with the bank, full disclosure, and full knowledge of the SBA regulations, we were able to reduce that amount to $50,000… The greatest part about it was that we got the $50,000 to be paid out over time!!  Thats right, not only did we do the impossible, but we stretched the impossible pay out over 2 years.

When we tell potential clients that we achieve these results, the response is always “its too good to be true”…. which is an understandable response.  However it is not too good to be true.  Because we know the guidelines and restrictions as to how the SBA would have to forcefully collect from a guarantor, we are able to calculate roughly the return they would receive through forceful collection.  We are then able to put forth an Offer in Compromise that meets or exceeds what the SBA could forcefully collect.

In this case, $50,000 was above what the SBA could collect. The real estate was protected by homestead and all other assets were not liquid or collectable.  Knowing this, we were able to give a number that my client could afford and the SBA and BAnk could support.  The SBA will now receive higher returns and the bank did its job in servicing the note, and therefore received its SBA guaranty.  So in the end we removed $1.5 million dollars in debt but also satisfied the bank and SBA.  Everyone was happy at the end of the day

Now my client is free to move on.  Her life is no longer under attack.  She was able to settle her personal guaranty for acceptable losses.  $50K for 1.5 Million is a great deal any day of the week.

If you are faced with an SBA problem, we can do this for you as well.  Call us