Can a Creditor Take My Retirement Money?

Can a Creditor Take My Retirement Money?

When faced with reduced revenues, increased overhead, and other market forces that put pressure on the cash flow of small businesses, many owners liquidate their personal assets and invest them into their business. They liquidate stock accounts, cash savings, sell other assets to raise cash, and even forego a paycheck. It is their passion and their determination that leads them to believe that they will get that returned money and more once ...

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The Legal Defense for SBA Loan Default

The Legal Defense for SBA Loan Default

When a business enters into payment default and ultimately into a debt workout with its SBA lender, the SBA, and the bank often take legal action against both the borrower and guarantor on the loan. The lender will sue for breach of contract and pursue a judgment as the initial steps in foreclosure of the business and its assets. Judgments are awarded to creditors once they have sued a business and proven to ...

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Business Debt Schedule – How to Best Prioritize Your Debts

Business Debt Schedule – How to Best Prioritize Your Debts

Running a business requires a business owner to wear many hats and display many skills. They must be involved in areas such as sales, marketing, managing their workforce, managing customer relationships, and leading their business to success through astute financial practices. As described in our book Successfully Navigating the Downturn, there are four pillars to success that all business owners must be sufficient in. They are Management by ...

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How Does Debt Cancellation Income Affect Your Tax Return?

How Does Debt Cancellation Income Affect Your Tax Return?

So you’ve settled all of your debts, paid off your creditors (some for pennies on the dollar), and now you’re able to walk away and completely put your debt issues behind you, right? Not so fast! Debt cancellation income or income from debt forgiveness is something that must be analyzed early on before you begin a debt settlement negotiation.

Many people don’t realize when they settle an outstanding debt, and the ...

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How to Get an SBA Lien Release on Your Home

How to Get an SBA Lien Release on Your Home

In every workout that I’ve been involved with, there nothing that elicits a stronger emotional reaction more than the threat of losing one’s home.

Let’s face it, if you are a small business owner that has received SBA guaranteed financing, the chances are that the lending bank, in conjunction with the SBA, required you to voluntarily provide them a “deed of trust” or a mortgage filing against your personal residence. ...

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SBA Loan Offer in Compromise Calculator

SBA Loan Offer in Compromise Calculator

How much can I settle for?

This is the question clients ask us every day. Almost every borrower wants to pay their bills, but when financial disaster strikes, it is not always possible to fully repay your debts when you are forced to close your business and walk away. Luckily the SBA has a particular program, designed for borrowers looking to avoid bankruptcy and make a good faith settlement with their lender.

Clients ...

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What to include In A SBA Hardship Letter

What to Include In An SBA Hardship Letter

The SBA debt settlement process is not ever very easy or straightforward. We guide clients through this maze all the time, but many borrowers in default try and settle their debt on their own when it is relatively straight forward. The required documentation for submitting an SBA Offer in Compromise is quite simple. An SBA 770 form (the personal financial statement and monthly cash-flow statement), an SBA 1150 form (the document ...

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Can Bank Accounts Be Garnished in an SBA Loan Default?

Can Bank Accounts Be Garnished in an SBA Loan Default?

Many clients ask us “Can bank accounts be garnished in an SBA loan default?” Simply put, yes they can. So here is what you need to know if you are at risk of being garnished in an SBA loan default.

When your business enters into default with your creditors and begins settlement or workout discussions, it is important that you take steps to protect your bank accounts. Creditors have a ...

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SBA Loan Modification or Loan Deferment – How to Qualify?

SBA Loan Modification or Loan Deferment

How to Qualify

Negotiating an SBA loan modification or a deferment is an art – not a science. It is a delicate dance between the borrowing business, the guarantors, and the lender. The business needs to prove it is in need of assistance, but it also needs to demonstrate that it is still a viable business capable of repayment. Show too much distress, and the lenders deny the request and will likely ...

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SBA Lien on My house – Am I Going to Lose My Home in a Default?

There’s an SBA Lien on My House

Am I Going to Lose My Home in a Default?

So you’ve defaulted on your business loan, and the SBA lien on your house is making you feel uneasy. Are you going to lose your home via foreclosure?

The simple answer is this: it depends on the numbers.

Let’s face it, if you are a small business owner that has received SBA guaranteed financing, the chances are that the lending bank, in conjunction with ...

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