Practical Solutions in Troubled Commercial Loan Situations
When a commercial loan goes into default, it makes sense for the creditor to consider whether its interests might be better served by giving the debtor an opportunity to work its way out of financial problems, especially when they appear to result from difficult economic conditions rather than poor management. At the same time, creditors need to know when workouts or loan modification solutions will simply delay bankruptcy rather than prevent it.
The commercial lawyers of Ziegler Metzger offer secured and unsecured business creditors sound advice and practical solutions in commercial loan workouts of all kinds, ranging from business lease problems to complex inventory financing commitments. Serving clients in the Greater Cleveland area and throughout Ohio, we provide Counsel of Good Value for creditors of all types. When your debtor is unable to make payments, we can explain your rights and explore the options available to you, and we will fight to help you get the best outcome possible in your collections matter.
How Ziegler Metzger Assists Clients
Our analysis begins with a comprehensive evaluation of your credit position in terms of perfection, priority and collateral value if you hold a mortgage or a security interest, and what you could expect to realize as a general creditor in bankruptcy if your claim is wholly or partially unsecured. We also make an objective assessment of the debtor’s viability under different scenarios to see if extended payment terms, substitution of collateral, cooperation with other creditors, or a structured partial liquidation would represent realistic options for the client and debtor alike.
In the real estate context, we work with private lenders, mortgage assignees and banks on short sales, loan modifications, deeds in lieu of foreclosure, auction sales or other alternatives to judicial foreclosure or bankruptcy. If transfer of the debtor’s interest in the property to the creditor is part of the solution, we also advise the creditor about the management and protection of the property pending later disposition in a better market.
Ohio Foreclosure Lawyers With Practical Advice About Creditors’ Remedies
Knowing just when to assert the rights of foreclosure, repossession and liquidation is always difficult for a secured creditor — if you act too quickly, you might be inducing losses that could have been avoided; but if you act too late, declining collateral values and the administrative expenses of bankruptcy could significantly undermine your position.