SBA Default – New Threat to Your Personal Credit

Warning Bulletin: PRIORITY ALERT
Issued 03.20.2018

SBA default poses major new threat to your personal credit – Here’s what we know.

An ominous new threat.

In the last 30 days Second Wind Consultants has identified a dangerous policy shift confronting guarantors in SBA default.

The SBA, with no formal announcement, has taken an aggressive and threatening new stance against guarantors of defaulted loans.

We have identified an ominous pattern of activity and can now confirm that the SBA has begun reporting “Charged Off” SBA debt ...

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Succeed in Negotiating with the US Treasury Department

Negotiating with the US Treasury Department

How to Succeed

In the world of debt workout the Treasury is a little-known area that files go to die.

Lawyers, accountants, and many other professionals have told my clients that once a file reaches Treasury collection they have to file a bankruptcy because the loan cannot be settled.

That is completely inaccurate and frankly, bad advice to many guarantors. Though bankruptcy is a valid answer for many individuals with overwhelming debts, the ...

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Successful Negotiation with the US Treasury Department

Successful Negotiation with the US Treasury Department

Federally backed loans in serious delinquency, past the point of collection by the primary lender, often end up at the US Treasury Department. This can include student loans, Federally backed agricultural loans, and as we often see, SBA backed loans.

If you are reading this article, chances are you once took on an SBA backed loan for your business, and things have not worked out as planned. The business is closed, and you ...

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Settle Debt with the US Treasury Department

Settle Debt with the US Treasury Department

In the world of SBA collection, there exists a name that inspires fear in debtors far and wide. If a lender is having trouble collecting, they tell a borrower they will send the matter off for collection in the “Treasury,” using the name like some taboo character parents use to scare children into behaving properly.

The federal government guarantees SBA debts in the event of default and, like all federally supported obligations, defaulted ...

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Solution to SBA Loan Default – Second Wind Consultants

Solution to SBA Loan Default

An SBA loan is a loan to a small business that otherwise would not qualify for a loan through regular business lenders. The small business receives the funds because the lender’s risk gets mitigated by the Small Business Administration’s guarantee. If your loan goes into default, the government will cover the losses of the lender up to 90%. A great program to get our economy stimulated and likely responsible for the creation of ...

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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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How Does Debt Cancellation Income Affect Tax Return

How Does Debt Cancellation Income Affect 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 creditor ...

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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 in a default.

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 ...

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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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