This feature originally appeared in the May 18th edition of the Pittsburgh Business Times.
Q: When a customer has not been making payments, should I consider a “workout”?
Advice: A “workout” is a mutually negotiated legal arrangement, signed by both creditor and debtor, in which the debtor agrees to continue making payments in exchange for more lenient terms. This modification does not include a bankruptcy filing. By contacting your customer at the first sign of trouble to discuss a workout or a refinance, you can avoid the difference between winning (getting paid) or suffering defeat at the hands of a bankruptcy court.