SBA EIDL Loan Default Attorney Long Island
If keeping up with your EIDL (Economic Injury Disaster Loan) payments is starting to feel like a burden, our team of debt relief attorneys at Macco & Corey P.C. is here to help. Whether you are just beginning to notice the financial strain or you are in the middle of your bank accounts being frozen, your assets being claimed, or your wages being garnished, we can help you find the smartest way to move forward.
If you are facing pressure from any of the following parties, we are prepared to defend you.
- U.S. Small Business Administration (SBA)
- Treasury Department’s Bureau of the Fiscal Service
- Department of Justice (DOJ)
- Internal Revenue Service (IRS)
- Third-party debt collection agencies
- Private servicing companies
There is a strict set of legal guidelines these agencies have to follow. If you are located on Long Island and have encountered forceful or unethical collection tactics, call our SBA EIDL loan default law firm at 631-549-7900 or contact us online and let us protect your rights.
Debt Relief Services We Offer for EIDL Loans in Long Island, NY
There are options available to EIDL beneficiaries who are having difficulty repaying their loan. Get in touch with us to determine what kind of EIDL forgiveness program you might qualify for. We can discuss the following avenues and pursue the best option based on your unique situation.
Loan modification or restructuring
It might be possible to adjust the terms of your EIDL loan in order to make it more manageable for you. We will conduct a thorough review of your financial affairs – your income, existing debts, and business expenses. Our goal is to understand precisely how much you can realistically afford to pay each month without putting undue strain on your business.
Based on this information, we will directly negotiate with the SBA and convince them to change your loan’s terms in a way that fits your current financial capacity. This could be reducing your monthly payments or extending the duration of your loan, so you have more time to pay it off, thereby reducing the monthly burden. In some cases, it could also be possible to negotiate a lower interest rate, which would decrease the total amount you will have to pay back.
Offer-in-compromise
If we can demonstrate to the SBA that paying the full amount is not feasible for you due to your financial situation, we may be able to settle your loan for less than what you currently owe. We will prepare detailed financial statements, including cash flow analysis, asset valuation, and projections of your future income to show the SBA that accepting a reduced payment is in their best interest too.
As the name suggests, it is a compromise, i.e., a situation where we need to find common ground. The SBA will want to recover as much of the loan as possible, but at the same time, we need to make sure you are not stretched beyond your means. The ideal outcome is to reach an agreement where you pay a lump sum amount that is significantly less than your total debt, but still acceptable to the SBA.
Installment payment plans
This may sound similar to loan modification but it is not: an installment payment plan focuses on rescheduling how you pay without changing the original terms of your SBA loan. Based on your financial assessment, our SBA EIDL loan default attorney in New York will work out a monthly payment amount that is reasonable, so you can keep up with your obligations without it being overwhelming. Once we have a proposed payment plan, we will present it to the SBA on your behalf and negotiate a payment schedule that aligns with your ability to pay.
Deferment or forbearance
Deferment is when you temporarily postpone your loan payments, while forbearance is when they are reduced or suspended for a period. Both options can provide breathing room, but it is important to understand how each will affect your mortgage in the long term. Once we decide which option suits your situation best, we will negotiate with the SBA to pause or reduce your payments temporarily. We will also ensure that this short-term relief is structured in a way that does not lead to unmanageable financial pressure later on.
Bankruptcy
As a last resort, our bankruptcy attorney may be able to help discharge your SBA loan through bankruptcy. The process and implications, however, will depend on whether the bankruptcy is personal or for the business. If you have personally guaranteed this loan, filing for personal bankruptcy might discharge your obligation to repay – this is a good option if your personal assets are at risk. But while your personal liability might be discharged, the business’s liability remains, i.e., the SBA can still recover the debt from your business assets.
If we consider filing for business bankruptcy, the focus will be on whether your business can sustain operations. Factors like your business type, structure, assets, liabilities, and cash flow are critical in deciding between restructuring (Chapter 11) or liquidation (Chapter 7). We will file your bankruptcy petition and represent your interests during the creditors’ meeting. We will negotiate terms that consider both immediate relief from debt and the long-term health of your personal and business finances.
Legal defense
If you have received a summons and complaint from the US District Attorney’s Office, contact us immediately because ignoring it is not an option – it can result in an automatic court judgment against you. Although outright winning against an SBA lawsuit based on legal arguments alone might be challenging, especially if the claim is accurate and lawful, our approach is not just about winning.
We take concrete steps to effectively manage the situation to YOUR advantage. For example, if you need more time to assess your options, gather funds, consider bankruptcy, or if you are planning to close your business, defending against this lawsuit can provide you with that valuable time.
Let Our Debt Management Attorneys Find You a Creative Solution
Our attorneys at Macco & Corey P.C. have over 70 years of combined experience in business debt relief services including SBA loan negotiations. We are well-equipped to resolve the matter in a way that minimizes its impact on you and your business. If you are located on Long Island, call us today at 631-549-7900 for a free consultation with an SBA EIDL lawyer and let us help you achieve the best possible outcome.
