If anotheer company wants to foreclose on our company,W wll we have the opportunity to delay foreclosure until after a hearing?
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If anotheer company wants to foreclose on our company,W wll we have the opportunity to delay foreclosure until after a hearing?
The lender is holding invoices which will cover the debt within two weeks. Can the lender be forced to apply what he receives from our customers? Will we be able to ask for a stay and a hearing?
Asked on December 17, 2013 under Business Law, Texas
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
Generally, to "foreclose" on a business, or call debts due and/or recover security for bad debt, does require a hearing first; however, check the terms of the agreements to see what they indicate for the process. Even if the agreements will allow them to, for example, take security without a hearing, you would then have the right to go to court and file a complaint claiming that the lender's action was wrong and seeking a stay until a hearing can be scheduled; this will usually at least buy you a few weeks of time. However, before doing any of this, speak with the lender--they may well be willing to voluntarily give you additional time and/or work out a payment schedule or plan.
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