Workouts are a moving target. Be flexible and realistic, affordable losses is the goal..

Workouts are part science, part art form, and very unpredictable. Please remember a person entering a workout situation owes the money. There is no defense to this issue. There is no allegation that it is not due, it is, thus the issue is an after the fact indefensible negotiation. You have received the benefit of the bargain and now cannot pay the agreed price and want a reduced price.

There is no question or arguments about these facts.

Therefore, the workout scenario is all about changing the deal. This is new ground for both the debtor and creditor, new terms and conditions, is what the debtor is asking for.

In fact the creditor never even agreed to enter into a workout discussion or negotiation and has no obligation to do so.Thus the first victory to be taken by the debtor is to commit the creditor to enter into a workout negotiation. This is a very important issue to be agreed upon as it means there is a willingness to discuss a restructured payback program that is less then what was originally agreed to.

Sounds unlikely, improbably, impossible but that’s the first objective and certainly an up hill battle on a very slippery slope. However if the creditor agrees to enter into a workout negotiation, you have taken the most important victory of the scenario. If they agree to the discussion they are indicating they are willing to take less the they are owed, its now just a matter of how much and what the terms will be.

Once agreed that the creditor is willing to enter into the discussion, this may be the only agreement both parties agree to without negotiation. It either will happen or it won’t. It may be a matter of policy, or under the circumstances acceptable to the creditor, but it is the first battleground and the most important. It set the stage for the workout and how this issue is handled is very important.

The rest is a crap shoot. Who knows what will happen, what will be agreed to, how much it will cost and what the terms and conditions will be? Its a new game and while possibly predictable within a broad spectrum, depending upon the facts and the skill of the negotiator, the results are impossible to predetermine.

Thus be prepared, it may work out well, BUT in fact any discount is a victory for the debtor as it is a pure gift that is not required and unlikely, and never planned for nor part of the original deal. Thus whatever is achieved in a workout negotiation that is ultimately a reworking of the original agreement in an after the fact renegotiation is both UNPREDICTABLE and a huge victory for the debtor.

The point is, while planning for and implementing a workout strategy, one must be extremely flexible and appreciative of any forgiveness granted, as it is a true gift, undeserved and offered only because it is a practical solution for the creditor, not an entitlement for the debtor.

In a word a win is a win, stay in the game, fight for another day. A workout is a moving target and any conclusion that is affordable is a successful conclusion. A workout is not a place to gain wealth, or “beat” the creditor more then is warranted under the circumstances. One must have a realistic attitude going into a workout negotiation, disclose all pertinent information, make an effective presentation of the facts supporting a workout compromise and of course be properly represented.

A workout negotiation should never be done by the debtor but ONLY by a professional experienced workout specialist.

A workout is not an opportunity to make a profit, but is a compromise the creditor is allowing. Do not get greedy, it will not work out. Be satisfied with any conclusion you can afford to repay. Affordable losses I call it. Thats the goal.