Questions about Economic Recession Problems
During the recent recession the value of our equipment has plummeted. Since the recession we have been making "interest-only" payments of $10,000-$14,000. Wells Fargo Equipment Finance (our lender) has been pressuring us to sell off equipment at pennies on the dollar. Shouldn't they have to take some of the loss as well?The lender is not in a position to take on a percentage of your losses. You are the one who took the loan with the promise to repay it. Although, everyone has been affected by the recession, it is not the lenders fault for your inability to pay the debt. You are liable to repay the loan regardless of the current economic status. You may want to consider filing chapter 11 in order to better control the payments of your debt.
My son and I have been hammered with the recession for our rental properties and will have to go bankrupt and shut it all down. A question we have is, if a bank foreclosures on a property (i.e., sheriff's sale) do we lose possession of the property immediately or can we still collect rents during the 6 month redemption period?In a situation like foreclosure, the tenant is allowed to remain in their homes for the extent of the lease. If the tenant is paying month to month, they will be allowed 90 days to find another living situation. These are provisions from the "Protecting Tenants at Foreclosure Act of 2009". The only exception to this rule would be for a buyer who chooses to live on the property in question. In this situation, the buyer can end the lease of a tenant as long as they provide a 90 day notice. As far as you collecting the rent from the tenants after the foreclosure, you cannot. The money generated from the tenants rent will go to the new buyer or the bank.
Due to the recession, we were forced to close one of our offices in MI which meant that we had to break a five year lease and our landlord received a judgment for the amount of $350,000. We left over $140,000 worth of furniture. We haven't heard from the landlord in over seven years and need to settle the judgment. What should we do?In MI, a judgment must be renewed in 10 years if it hasn't been satisfied. You need to contact the landlord and offer a settlement. This can be a lump sum amount or a payment plan to clear the debt. There is going to be interest attached to the debt for the time that the judgment was awarded but you should be allowed to subtract the amount of the furniture from the original judgment. You will need the assistance of your attorney to begin negotiations and represent your company. Another option is to wait until the 10 years has lapsed and see if the landlord renews the judgment. If the judgment isn't renewed, you won't have to pay the debt, unless you agree in writing that you are responsible for the debt after the judgment expires.
An economic recession poses many problems because it is a hardship on the economy. Many people find themselves in a situation where they are facing bankruptcy or foreclosure, businesses find it difficult to sustain and tend to wind up operations during an economic recession. All this and more can result in an instable economy. As individuals and owners of businesses, there are bound to be questions about the various recession problems you face. If you have legal questions about the recession, you should always contact a professional to assist you in finding a solution to your individual situation.