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I asked a question of Legal beacon & had additional questions regarding the same subject.
State/Country relating to Question: Illinois Already Tried: I spoke to Legal Beacon on line there last week. Had an over the road truck w/small trucking business which is incorporated. I have 1 loan at a bank in the business name also a credit card. I am behind in my payments because of loss of income & am trying to sell my truck. I last month made minimum payments on the accounts. I now received a letter that on my business acct's now that they are preparing for charge off because the account's are 6 payments past due. I was advised by Legal Beacon to write a strong letter to the bank about the company not having the monies to pay. What does charge off mean & their letter state's that I have failed to work w/them to make acceptable payment arrangements.I have talked w/them & attempted to make payments.I am not refusing to pay I simply do not have the money. If I write a strong letter how do I rebute this inaccuracies in a legal form & what needs to be included in the letter to the bank.
<p>Hello there...Good evening to you....Let me see if I can help you again...</p><p> </p><p>1) When the bank says they are charging off the accounts, it means basically they are writing them off as bad loans. If your company is incorporated, however, and you have not personally guaranteed these loans, the bank can't get anything from your company if it is insolvent. </p><p> </p><p>2) Your company cannot make payment arrangements with money it doesn't have. You've made the best arrangements possible in light of the financial situation of your company. It's to the benefit of both you and the bank that you be able to work out payment arrangements that allow the company to continue to operate because that's the only way the bank has any chance of getting paid. </p><p> </p><p>Point these issues out in your letter and tell them you are going to make every effort to manage your company out of these economic troubles, but if they accept some kind of arrangement which allows you to do so, then they essentially get nothing because the company would be insolvent and have zero ability to pay anything. </p><p> </p><p>Let me know if this helps or if I can help you further!</p><p> </p><p> </p><p><em>I hope this has given you the guidance you were seeking. I wish you the best of luck!</em></p><p> </p><p><em> If I have adequately answered your question, even though the answer might not have been the one for which you hoped, I would appreciate it if you would <u>please click the GREEN "ACCEPT" button </u></em><em><u>NOW</u></em><em>, so that I receive credit for my work; otherwise, though you've made a deposit, I do not receive credit.</em></p><p> </p><p><em> If you need additional clarification on this question after clicking ACCEPT, please don't hesitate to click "Reply" and I will be happy to do what I can to help you further. Thanks for allowing me to be of service to you. </em></p><p> </p><p><em>The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.</em></p><p> </p><p> </p><p> </p><p> </p>
the second part of my question was last week you recomended that I write a strong letter to the bank. I need some input as to what the letter needs to have included. Another thing is that they are using words like I am refusing to pay there is a difference in refusing to pay & having the ability to do so. Do you think these inaccuracies need to be rebutted in this letter & if so what key words or phrases need to be used in the letter to the bank ?. What is the next step regarding the bank charge off & how should I respond.
Bridget
I'm at dinner at the moment, but as soon as I return, I will draft the basic guts of the letter for you....deal?
Attorney
Attorney/Developer
Ok....I'm back....thanks for your patience.... Dear _____________________ I am in receipt of your correspondence regarding my overdue loan and credit card accounts. I am sorry that you have characterized the situation as a refusal on behalf of my company to come to an agreeable solution with regard to these accounts. As I have previously informed you, the economy has had a significant impact on the company's business and its ability to stay current on the scheduled payments, and as a result, the company is currently pretty much insolvent and does not have the ability to pay these loans. I would hope that we could work together to come to a solution which would allow the company to work through this current economic downturn and eventually pay these accounts because the alternative is not a helpful solution to either the company or the bank. The alternative is for the company to seek bankruptcy protection, which would limit the ability of the company to survive and result in the bank receiving pennies on the dollar on the amount owed. I look forward to hearing from you to discuss alternatives which work to the benefit of us both, because any other result is a lose for the company and a lose for the bank. How's that sound for a start. Feel free to edit it as you desire, but this should get you started! Have a great evening!
I accepted this answer however it seemed to take forever for the processing of charge. I will try again after while however, I don't want to get charged more times than I agreed to pay.
Thanks
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