Served A Demand Letter By The Bank? Five Things To Know

If you are served with a demand letter from your lender, you don't have to fold up your tent and give in. If, like most companies, you feel that if you had more time, you could improve the situation (to the benefit of the Bank and the company), there are options. Here are 5 things that you can consider which will make it more likely that the Bank will either agree, or be forced to agree, to give you some more time to come up with a better solution.

1. It's Not Over until it's Over: There are remedies under the Bankruptcy and Insolvency Act and other insolvency statutes that can be used to stop a Bank from continuing with its enforcement and provide you with breathing space to consider your options. In particular, if you file of a Notice of Intention to Make a Proposal before the notice period in the Bank's demand letter expires, the Bank's enforcement against you is automatically put on hold. However, this remedy does not last for long if you don't really have a plan