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In default on SBA loan and trying to work out an offer in compromise. Borrower owns several properties with little equity.

Laguna Beach, CA |

Consultant has advised borrower that the SBA does not consider the costs of liquidating the real properties in evaluating an offer in compromise, instead just focusing on value. This makes no sense to me, but I have no experience in dealing with the SBA. In evaluating an offer in compromise, does the SBA take into account the costs of liquidating a borrower's assets?

Attorney Answers 2


I would need more information before I could provide you with a proper response. However, I suggest that you speak with a local attorney asap.

If you found this Answer helpful, please mark it as "Best Answer". Your feedback is greatly appreciated. Peter J. Lamont, Esq. Law Offices of Peter J. Lamont 623 Lafayette Avenue, Suite 2, Hawthorne, NJ 07506 Phone: (973) 949-3770 Fax: (866) 603-0471 Toll Free: (855) NJLAW01 (855) 655-2901 Additional Offices in New York, Monument, CO, San Juan, PR and affiliates throughout the country. PLEASE NOTE: The above statements are provided for informational purposes only and do not constitute legal advice. Transmission of the information is not intended to create, and the receipt does not constitute, an attorney-client relationship between sender and receiver. You should not act or rely on any information contained on this site without first seeking the advice of an attorney.

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More information is needed to fully advise you however, it certainly seems reasonable that the costs of liquidation are a factor to be considered along with other costs. has a pretty thorough website; see the link below on liquidating assets.

This is my opinion and should not be construed as legal advise for your specific case as there are many more facts which you have not provided.

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