Legal Question in Bankruptcy in Alabama

Forbearance agreements

My partner and I have an LLC and own a plant warehouse. The bank called our note due to 2 months of late payments. We paid and still are paying our mortgage however they are playing hardball and offer no reprieve. Regarding such my question pertains to a new extension of a forbearance agreement. A request was made for an extension to pay off debt and was granted for a few extra months however the new agreement contains clauses of which seem severe and disabling considering terms which would put us at risk for owing even more debt due to attorney fees, penalties, and escalated charges up to 15% of the total debt of a couple hundred thousand dollars. An acknowledgement of lack of defense clause has been added which states we agree we have no extenuating circumstances nor any excuse for not being able to pay off the entire debt immediately. This is not accurate and in the economy we are in there is presently no funding available to us considering the lack of our own resources in which to pay off the entire debt. Would it be prudent to sign and extend or simply file some type of chapter filing? Is it best to just let the bank have the asset without a fight? I know these are hard questions to answer however we need a game plan.


Asked on 12/16/08, 11:39 pm

1 Answer from Attorneys
Alexander M. Rosenfeld Rosenfeld & Stein, P.A.

Re: Forbearance agreements

First, without seeing and reading the proposed agreement, it is impossible to provide meaningful advice. If anything,I suggest you to consult with counsel..spring for the fee, and then decide. In the meantime, I would not sign.

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Answered on 12/17/08, 2:47 pm


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