p0584_12816

JAMES O. BERDAHL

LAWYER

SIOUX FALLS, S. D.

April 7, 1938.

Dear Jennie:

I have your letter in regard to the Erdahl matter.
About the only thing to do is to accept the offer, for it
the creditors do not accept, I am quite sure that he will
file petition in bankruptcy. If that should be done, it
is not at all likely that you will receive anything.

As I understand the attorney's proposition, it follows
a somewhat recent bankruptcy statute which is not a bankrupt-
cy statute at all, but more in the sense of a "moratorium"
statute,- that is, one in which, under certain supervised
regulations, payment of debts are budgeted, and time given
in which to make the installment payments. It is probably
doubtful if this is such a case as could be brought under
that statute, and they are not proposing to do so. I take
it for granted that what will be done is for Mr. Erdahl to
pay over the money to the attorney or some other agency to
be paid over to the various creditors on a percentage basis.
I had a small claim that was handled in that way by a Minne-
apolis concern. In that case it worked out quite satisfac-
torily. I think the attorney's proposal is a sensible one,
and one through which the indebtednesses will be paid in
full; for that reason I suggest that you tell him that you
are willing to cooperate. No use to cry over spilled milk.
The condition is there to face, and it will not help matters
to say no.

There probably is good reason for saying that Mr. Er-
dahl has no good reason for finding himself in his present
financial difficulty. With reasonable salary for a number
of years, he should have budgeted his expenses long before
this; but that, too, is water long since under the bridge.

Naturally all the creditors will have to agree to the
proposition. If that is not done, your consent to the ar-
rangement will have no binding effect. Then, too, if Mr.
Erdahl should not live up to his part of the agreement,
suit could be started on his obligation to you. The propo-
sition seems to be to commence to pay the out-of-town cred-
itors next fall. If he is as heavily in debt as the at-
torney suggests, and if regular payments are kept up com-
mencing next fall, even though those payments are small, I
think you are fortunate.