The products and services that Georgia businesses provide are not offered to customers and clients for free. Companies expect to be paid, and when invoices go unpaid, businesses can suffer. In some cases, it might be necessary to file business litigation in order to collect a debt, but often, an agreement can be reached without going to court.
Workout and forbearance agreements can help companies avoid litigation, which can consume a considerable amount of time and resources. Often, the debtor (the one who owes money) is unable to pay in accordance with the original agreement with the creditor (the one who is owed money). Negotiating a new agreement under which payments are made on terms that are satisfactory to both sides can provide a way for the creditor to receive payments in exchange for not engaging any further collection efforts.
The agreement could also give the creditor the right to take certain actions if the debtor breaches the agreement. For example, if the debtor fails to make payments in accordance with the workout or forbearance agreement, the creditor may file a lawsuit against the debtor. If a monetary judgment is entered by a Georgia court, the creditor may pursue any legal remedies to collect on the judgment.
Since many companies do not want to lose a customer or client if possible, finding an alternative way to resolve the situation could go a long way toward saving the business relationship. There are cases where the debtor could have suffered an economic setback but is still willing to pay the debt. An attorney can review your situation and advise you as to whether a forbearance agreement or workout agreement would better serve the company’s goals in lieu of filing business litigation.