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Recession happens when there is a slowdown of economic activity. It occurs in every aspect of spending. Employment, investments, profits, inflation and household incomes go downward while unemployment and bankruptcies tend to rise. The government tries to increase the money supply and decrease taxation. During such a period, people tend to hold on their money since they are afraid to spend it. This in turn creates a heavier hardship on the economy. This article provides answers to some of the most commonly asked questions about issues related to this. During the recent recession the value of our equipment has done down. Since the recession we have been making “interest-only” payments of $10,000 to $14,000. Our lender Wells Fargo Equipment Finance is pressuring us to sell off equipment at pennies on the dollar. Shouldn’t they share some of the losses also?
The lender is not supposed to share any part of the losses. You took the loan with a promise to repay it. While it is true that everyone has been affected by the recession, yet the lender is not at fault for your inability to pay the debt. You have to repay the loan whatever the economic situation might be. You may file a Chapter 11 for a better control of the payment of your debt. My son and I have been severely affected by the recession for our rental properties and will go bankrupt and shut it all down. My question is, if a bank forecloses on a property, do we lose possession of the property immediately or can we continue collecting rents during the 6 month redemption period?
In case of foreclosure, the tenant has the right to remain in their homes for the period of the lease. If the tenant is paying on a month to month basis, they will be given 90 days to find another accommodation. These are provisions from the "Protecting Tenants at Foreclosure Act of 2009". The only exception to this rule would be for a buyer who wishes to live on the property in question. Under this circumstance, the buyer has the right to terminate the lease of the tenant after providing a 90 days notice. You do not have the right to collect the rent from the tenants after the foreclosure. The money generated from the tenants rent will go to the new buyer or the bank. We were forced to close one of our offices due to the recession which meant that we had to break a five year lease and our landlord received a judgment for the amount of $350,000. Furniture worth over $140,000 were left over by us. We are yet to here from the landlord for the last seven years and need to settle the judgment. What should we do?
In MI, a judgment has to be renewed in 10 years if it is not satisfied. You should contact the landlord and offer a settlement. It can be done through a lump sum amount or a payment plan to clear the debt. Interest will accrue 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 have to hire an attorney to negotiate and represent your company. Alternatively, you can wait until 10 years and see whether the landlord renews the judgment. If it is not renewed, you don’t have to pay the debt, unless you agree in writing that you are responsible for the debt after the expiry of the judgment. If you are in trouble due to recession and need expert advice in a critical situation, it is advisable to ask a business lawyer about the best course of action and act accordingly.
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recession, what is recession, economic recession, what is recession, government help for small businesses during recession, recession problems,
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