Creditors' Rights 5
Q: What does the term "workout" mean in the creditors' rights arena?
A: A "workout" is a negotiated legal arrangement, signed by both creditor and debtor, in which the debtor agrees to continue making payments in exchange for more lenient terms. The closer the debtor is to bankruptcy, the stronger the case for a workout. By contacting your customer at the first sign of trouble to discuss a workout or a refinance, you can avoid the difference between winning (getting paid) or suffering defeat at the hands of a bankruptcy court.
