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Debtor/Creditor Workout

No one want to file bankruptcy, no matter how bad it looks. Fortunately there are options. We always look at the option of a “workout” if possible.


A “workout” is simply a negotiated agreement (out-of-court) between the debtor and the creditor for repayment of the debt held by the creditor.


Why choose a negotiated workout? The first and largest reason is to avoid filing for bankruptcy. Bankruptcy is a legal court ordered judgment that remains on a filer’s records for up to ten years. Filing for bankruptcy will most likely damage your credit and ability to borrow for a long time.

However, utilizing a workout does not affect a debtor’s right to file a bankruptcy at some future date, therefor reserving that option. In addition it is possible that a workout could have the same or even better results than a bankruptcy.


Since both the debtor and creditor are willing participants in the negotiation, results can be an improvement over bankruptcy.

Please contact us for more information.

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