Greetings Barnswallow. There's a phone number on your invoice.  That's the number for the SBA disaster loan servicing center.   Give them a call.  They'll be able to discuss repayment options.  

I think you are asking the wrong people.  You should be talking to those who are garnishing your pay.  All things are possible and you just have to approach them with a positive attitude and convince them on your new plan. You might also want to talk with an experienced attorney.  A few hundred dollars getting advice might just save you much more in the long run. Lastly, have you thought about seeking another loan to take this one out?  If you can qualify for another loan (even if you have to get a co-signer) - might just be a better way and could save you a lot in interest and fees over time. I know of several business and personal loan companies that look more at current cash flow then they do at credit or past situations like yours.  We list several of these on our website.  Might be worth looking into - you never know what can come out of it.

Disaster loans can be really difficult to settle.  Each type of SBA loan is serviced by a different area, and unfortunately the folks who manage the disaster loan area are the most difficult to settle with.  I recently had a client who was foreclosed on, the rest of his real estate was worthless, and my client had minimal income.  Even when it seemed clear that my client did not have the wherewithal to repay the loan, the disaster loan people rejected his offer.  Instead of getting a material amount of cash, they will now likely get nothing. The moral of my story is this....in order to settle a disaster loan, you need to have a boat load of cash (and let's face it, if you had that you would not have defaulted in the first place) or be teetering on the verge of bankruptcy.  Anything else seems to be summarily rejected.

We can always work out a settlement, however unfortunately disaster loans are currently much more difficult to workout and have much higher payoffs but it can be done. Unfortunately they are not very easy to work with and this information is hard to get but a workout will end it all and on favorable terms.