Call now to find out how: 770-406-1820

Why Choose a Workout?
There are a variety of reasons why a debtor might prefer a workout to bankruptcy. By entering into a voluntary agreement with creditors, the debtor avoids the public stigma that attaches to bankruptcy
but achieves the same results-discharge from all or a portion of his or her debts. In fact, a workout can be even broader than a bankruptcy. Also, a workout does not affect the debtor's rights to file a future bankruptcy. However, certain types of bankruptcy discharges do. But the main advantage of a workout is that it is voluntarily entered into by both the debtor and the participating creditor(s). In a workout, unlike bankruptcy, the majority of creditors cannot cram down concessions on dissenting creditors. All of the participating creditors must agree to the workout's terms. Call
   Danny F. Dukes and Associates, LLC and let us help you witha workout.

Debt Workout

Non-Bankruptcy Debt Settlement

Danny F. Dukes & Associates, LLC is a BBB Accredited Business Consultant in Canton, GA

The term "debt workout" describes a non-bankruptcy negotiated modification of debt. More simply it is a workout, which is an agreement worked out between a debtor and his or her creditors for repayment of the debts between them. This workout is negotiated without all the procedural complications and avoids the reputation risk of the bankruptcy process. We have experienced former bankers that understand it is not in either party's best interest to wind up in bankruptcy. We have had troubled debt removed from legal processes and re-entered negotiations between the client and their bank.

 

Settlement Agreements and Extensions

Workouts are also sometimes called settlement agreements or extensions. A "settlement agreement" is a contract between the debtor and one or more creditors in which the creditors agree to take a partial payment in full satisfaction of their claims. An "extension," by contrast, is a contract between the debtor and two or more creditors in which the creditors agree to extend the time for payment of their claims. An agreement may be both a composition and an extension-in other words, an agreement to accept less money over a longer period of time.

 

The same laws govern both settlement agreements and extensions. Both are subject more to contract law principles than debtor-creditor rules. Thus, settlement agreements and extensions must satisfy all formal requirements of contract formation, which
can vary from state to state, but most of the basic principles are constant whichever state you're in. There must be an offer to make a contract, the offer
must be accepted, and there must be "consideration," or something or value exchanged between the parties.

 

While more than one creditor may enter into the workout agreement, there is no requirement
that all of the debtor's creditors agree to its terms. Creditors that do not agree to the workout are not affected by it and remain entitled to pursue other
remedies to collect the debts owed to them. Although they can theoretically proceed to recover the full amount due, they are forfeiting the right to
automatically benefit from whatever partial payment the composition would have allowed had they taken part.

Danny F. Dukes and Associates, LLC
101 Avalon CtCanton, GA30115US
Phone: 770-406-1820 Website: http://www.dannyfdukes.com/