Commercial loans: using litigation effectively when the borrower defaults

All parties to a commercial loan transaction expect the loan will be repaid in a timely manner and that the collateral securing the loan will remain intact.

However, all too often, the borrower may be beset by adverse circumstances, slowing or stopping loan payments. Then what? Typically, the lender will try to work out the loan informally with the borrower. This may work, but often the borrower stops responding or even disappears.

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