A Baltimore Commercial Litigation Lawyer Asks Businesses: Have You Waived Your Rights?
The news seems fraught with stories of bankruptcy, from individuals to large corporations. Loans are commonplace in everyday life, and people frequently turn to loans for everything from purchasing a vehicle to larger commitments like mortgages and business loans.
The current economy, while certainly challenging for the individual consumer, has hit business twice as hard. While operating costs climb, consumers are reluctant to employ services or purchase products. Because of this, businesses have been finding themselves operating on slimmer and slimmer margins.
Like so many businesses and individuals, you may have found that your own business is in danger of defaulting on a loan from your bank. Depending on how far into payment delinquency you have gotten, you may have been offered a forbearance agreement—but what does this mean for you and your business?
Proceed with Caution, But Not Fear
Forbearance is a temporary “fix” that many banks offer to avoid defaulting on a loan, by allowing the borrower to postpone or reduce payments for a designated amount of time. This typically involves an agreement between the lender and borrower that the lender cannot foreclose or accelerate payments during the agreed forbearance period.
In forbearance, however, the borrower also waives the right to fight any action that the lender takes to collect the remaining debt should the borrower not uphold the terms of the forbearance agreement. Other agreements such as restructuring a loan in the short or long term, or changing the date that the loan is to be paid in full, can also require the borrower to waive certain rights.
Talk to a Maryland Commercial Litigation Lawyer Today
Maryland and Delaware commercial litigation attorney Ron Drescher has over twenty-five years of experience in bankruptcy and commercial litigation, representing individuals and businesses throughout Maryland, Delaware, Pennsylvania, and Virginia. In his years assisting businesses with their legal battles, he has seen that borrowers in trouble tend to benefit the most from a property restructure or forbearance—but results can vary depending on the initial agreements set forth in your loan.
If you’d like to talk more about it, call the Baltimore office of Drescher & Associates today at 410.484.9000. Ron Drescher and his knowledgeable team are available to help you and your business regain control of your finances and move forward.