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Vol. 2011-03 | March, 2011

Debt Relief – Survival Strategy

Business and personal debt have become a management nightmare for those unprepared to deal with hostile creditors and their unyielding demands for payment. Even with the current economic distress, with property values still in sharp decline, and with interest rates sliding into low single digits, creditors still appear unwilling to negotiate, discuss, or even consider reasonable avenues of debt relief. Cash is their only apparent objective, even if it means destruction of a long-standing, reputable business.

An important resource is an organized, professional team of experienced Attorneys, defending debtors, and skilled in the art of negotiating fair and just resolution of debts, without the threat of bankruptcy, foreclosure, or destruction of credit. Attorneys with experience in defending debtors can muster years of professional legal experience and successful client relations in resolving complex legal problems involving credit and debt. Frequently, debt defaults arise as the result of illness, injuries, disability, family emergencies, unemployment, investments-gone-wrong, or simply overspending. Each dilemma can be overwhelming, since most debtors lack the skills and experience necessary to defend against aggressive debt collectors, legally!

Well-intentioned debtors are no match for the strategy, mindset, and aggressive telephone tactics. Nor are they prepared to defend upon being sued and hauled into Court. Sincere debtors, intending to make good their promises, are also at a serious disadvantage in this arena of continuing daily economic pressures. Faced with mounting defaults, with penalties, charges and previously established, high interest rates being imposed without modification, most debtors cannot even imagine how to negotiate a fair or reasonable resolution of their personal and business debts.

Debtors’ Defense Counsel can provide the legal strategy necessary for economic survival! They can invoke Federal and state laws which protect debtors and require creditors to provide a thorough review of all claims, including all of the charges, fees, penalties, interest and added charges, to achieve fair and equitable resolution for each debtor-client.

This may be especially true with business loans, lines of credit, personal credit, credit cards, taxes and utility bills as well.

Where necessary to combat default notices, or actual foreclosures, or other previously filed active court cases, Attorneys can appear as Debtor’s Counsel, to request extensions of time necessary to make arrangements for “breathing room”, to permit sensibly planned resolution.

Debt restructuring may actually result in the existing debt being replaced by a new, but much reduced debt, especially where the delinquencies, and interest rates can be modified to meet the debtor’s financial ability to repay. Where necessary, Counsel may also negotiate or recommend available alternatives of loan workouts, default forgiveness, arrangements, assignments, loan extensions, and other equitable relief. As a last resort, Counsel may implement relief through receivership, liquidation, sale, corporate reorganization, or Bankruptcy and non-Bankruptcy legal strategies.

Federal laws and those of each state provide that every debtor is entitled to fair and equitable representation and defense, in order to negotiate and achieve a fair and reasonable debt workout arrangement. It is urged that retained Counsel, consulted without delay, can provide immediate representation utilizing the professional experience to formulate and implement proper strategies for debt relief and resolution.

AUTHOR / EDITOR: J. NORMAN STARK is an Attorney-at-Law, a Registered Architect, (AIA, NCARB) Registered Landscape Architect, Interior Designer, Planner and Senior Appraiser (ASA), admitted to practice law before the Bar of Ohio, the US District Courts, Ohio and Illinois (Central Dist.), the US Court of Appeals, and the United States Supreme Court. He is a Mediator, Arbitrator and Litigator with experience in Business, Construction Law, and Public Works, and with additional experience in Real Estate, Construction Attorney (Legal Project and Crisis Management), and as an Expert Witness (Forensic Architect). His office is in Cleveland, Ohio.