p0584_12814

Office: Geneva 4381
Res. Regent 1623

HENRY MULDER
Attorney at Law
311 Metropolitan Bank Bldg.
MINNEAPOLIS, MINN.

March 30, 1938

Mrs. O. E. Rolvaag
Northfield, Minnesota

Re: A. C. Erdahl

Dear Madam:

Mr. Erdahl recently consulted me in regard to filing a
debtor's petition in bankruptcy to enable him to liquidate his
indebtedness. He stated to me that he owes $3,000 to twenty-
four creditors. About half of his creditors are in Minneapolis,
and they frequently call him at school and threaten to commence
legal action against him and garnishee his salary. All of this
has made him very nervous and he is unable to stand the pressure
any longer. The fact that he is being repeatedly disturbed at
school and worrying over possible garnishments has made him what
one would term almost a physical wreck. All of this has impaired
his work at school. It is necessary for him to do something to
ease the pressure or there is little likelihood that his creditors
will ever be paid.

Mr. Erdahl said that during the past five years his salary
cut has equalled about a year's salary. He had no control over
the salary cut. If it was not for that, he would be just about
out of debt.

After giving this matter quite a bit of thought, I ad-
vised Mr. Erdahl that the best solution of his financial diffi-
culties would be to have me pro-rate his accounts. If he filed
a debtor's petition in bankruptcy, there would be considerable
expense involved which would not help him or his creditors. This
would mean that there would be less for his creditors and it would
take him longer to pay his obligations. If all his creditors
will cooperate with me in pro-rating his accounts. Mr. Erdahl will
let me handle the pro-rate instead of filing a debtor's petition.
This action is not designated to avoid paying his creditors, but
is a plan whereby eventually all can be paid and in the meantime
give Mr. Erdahl peace of mind enabling him to carry on his school
work without interruption and jeopardizing his health and position.
As it has been, he has been unable to provide his family with
necessities.

Just what amount we shall be able to pay each creditor,
I have been unable to ascertain. At your convenience, will you
advise me if you will cooperate with us and just what balance he
owes you. As soon as I am able to contact all his creditors, I
shall be in a position to state whether a pro-rate can be worked
out, and if so, the amount we can pay each month, or if Mr.
Erdahl will be forced to file a debtor's petition.