There is no need to walk away from money owed you by a person or business just because the person or business is in bankruptcy. Often, the fact that the bankruptcy court is overseeing the debtor’s practices gives you a much better chance of collecting all or some of your debt. There are several actions that can protect your interests. While debtors have great protection in the bankruptcy process, it is not unlimited. I have protected clients’ debts nationwide. I have represented national banks and sole proprietors. I have negotiated settlements and, when settlement is not reasonable, have taken cases to trial. Our office will pursue:
- Administrative claims to allow payment to you for benefits the debtor receives during the pendency of the bankruptcy
- Adversary actions for court orders that the debt owed to you will be paid instead of discharged
- Cash collateral protection so that the debtor cannot use cash without your consent
- Claim objections
- Motions to compel the debtor to decide how a contract with you will be resolved
- Protection in Preference actions to protect payment to you shortly before the bankruptcy was filed
- Proof of claim filing and claim protection of the amount you are owed by the debtor
- Relief from the automatic stay so you may pursue your claim outside the bankruptcy
Each of these remedies provides protection for different situations. We will advise you of the remedies available to you and discuss whether pursuit makes financial sense to you.
If you would like information about the protection bankruptcy may afford you for financial distress, here is a good website from the Law Offices of Lauren Ross, a firm that represents debtors in bankruptcy www.bankrupt-law.com