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

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?

Laguna Beach, CA -

Attorney Answers (2)

Lori Jeanne Costanzo

Lori Jeanne Costanzo

Litigation Lawyer - San Jose, CA
Answered

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.

SBA.gov 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... more
Peter Joseph Lamont

Peter Joseph Lamont

Business Attorney - Hawthorne, NJ
Answered

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... more

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