You Do Not Have to Be Dead Broke to Do a Workout

One frequently held misconception to do a workout is that one must be dead broke, without a job or income. Not so at all. In fact one of our clients has six figure incomes, and we have successfully negotiated the forgiveness off seven figure debt obligations for pennies on the dollar.

Many of our clients have multiple income properties, very nice and expensive homes and expensive cars, and they get keep it all while we work out large debt obligations.

Sounds like a scam, not at all, just the reality of changing conditions.

Few small business owners saw the deep decline in our economy coming resulting in sharply reduced revenues as fast and as brutally as it did. Fewer were able to deflect it, respond quickly enough or do anything at all about it.

They were very successful, and enjoyed a very expensive life style, until the lights went out. So here is the dilemma, they own a million dollar house which is upside down, thus has no liquidated value. They have a large mortgage, and barely an ability to pay it....but they do.

They own expensive cars not worth its debt, and in a financing contract, so they pay it. What else can they do?

They have income properties they had previously invested in that are also upside down worth less than its mortgages and even producing revenue dedicated to paying the mortgages, but because it has no liquidated value, it has no interest to the defaulted creditors.

We enter into a workout negotiation for the guaranteed debt the small business owner is responsible for, having guaranteed the business borrowing, and yes, we reduce the payoff to pennies on the dollar relieving the business owner from millions of dollars of guaranteed debt and they get to keep their BMW's, their expensive homes, their investment properties and yes, even their boats and motorcycles.

Because their debts are contractual, and liquidation of the assets will not yield any liquidity for creditors, the assets are left alone.

In fact even the six figure income is secure as most of it is required for contractual obligations, like their mortgages etc.

They will be required to pay more back on their guaranty then those with less income, but it remains small change on large debts...and they get to keep their investments and life style.

Think twice if you believe you are not qualified for a workout if you fit this profile, many of our clients will re-emerge better off because of the workouts we do, while retaining their assets.