Nice Guys Get Slaughtered In A Workout

It’s sad, but true. The opposition – and unfortunately they are that – bankers, lenders of all sorts, professionals whose jobs it is to collect are unmerciful, unemotional, underhanded and sometimes even vengeful. And, they are very good at extracting money you may not even have and certainly shouldn’t be paying.

I was reminded about this fact today when one of these predators called me because he was making no headway with one of my excellent workout employees. He demanded from me a reasonable offer. I explained that our client was wiped out, had no equity, no earning capacity, and no savings and therefore could not pay any more than what we offered which was to be borrowed funds from family. I explained that it was, in fact, a most reasonable offer as it was the best he could do and was far more than liquidation would yield.

He was not satisfied. He explained the enormity of the debt and the continuation of the growth from unpaid interest every day to which I responded that my client has no option and can do no better irrespective of the enormity of the debt and the building interest in arrears. He then explained how the judgement and it’s effect would last for ten years. I responded again that my client has no choice. This is the best he can do.

He then went down the ethical route. I explained that this has absolutely nothing to do with this issue and, in fact, what this client is doing is quite honorable and highly ethical. Of course, the next question was, “Why doesn’t he file bankruptcy?” I responded, “What possible difference would that make to you?” I explained the reason he doesn’t want to and added, “…besides, bankruptcy would get you nothing. He is offering something, so what’s your point?” This went on and on down all the “collection” points these bandits use until he exhausted his repertoire and ended the call in anger and frustration having failed to achieve his goal to collect more.

By the way, the debt is $1.2 million. We had offered $70,000 and they had countered with $900,000. Silly.

The point is, many with less experience and less fortitude would have caved and would have made mistakes and agreed to either a deal that could not be supported or pledged money they really could not afford to pledge. Good guys get massacred in this process as success for the enemy is built on intimidation and attack. Get a gladiator to protect you and you will achieve a reasonable resolution.