Once you know of a bankruptcy, you must stop all collection actions. Even a simple letter or a telephone call can expose you to sanctions. After filing, Bankruptcy governs all collection activities. You must know how to use the bankruptcy process to protect you rights and seek your money.
Creditors caught in bankruptcy need our help to maximize their recovery and minimize their expenses. Unsecured claims have no value unless properly filed in a Chapter 7, 12 or 13. Using the wrong form can lose money. Almost all bankruptcy filings must be made by electronic means by a certified filer. You cannot do it yourself anymore but it does not have to be expensive to assert your claim.
Secured loans are enforceable in Bankruptcy up to the value of your collateral. But you need to protect the value from dissipation and depreciation. If a debtor wants to retain your collateral, you need to make sure you are adequately protected. We can sometimes get you the right to enforce your liens against the debtor’s property even while the bankruptcy is pending. Protecting your property rights in the plan confirmation process is essential. A confirmed Chapter 11, 12, or 13 plan is binding on everyone and can impair or extinguish your rights.
CONTRACTS AND LEASES
If you are a party to an ongoing contract or lease with a person who files bankruptcy, you have an urgent problem. You need immediate legal help. The Debtor may “assume” or “reject” such contracts, but has time to do so. What do you do in the meantime? What are your rights and remedies? We can help.
BANKRUPTCY LITIGATION AND CONTESTED MATTERS
Litigation in Bankruptcy Court often occurs. Trustees sue people to get money they think belongs to the Bankruptcy Estate even if the funds might have been properly paid before bankruptcy. This is called “Preference Litigation.” Sometimes the Trustee will attempt to reverse a transaction that is a couple of years old by use of other “Avoidance Powers.” Trustees might also sue to reduce or disallow your claim or to defeat your lien on debtor’s property.
These “Adversary Proceedings” or “Contested Matters” arise under specific bankruptcy statutes and special bankruptcy procedures. We can defend bankruptcy lawsuits of any kind, including alleged preferences, fraudulent conveyance, assuming or rejecting contracts or leases, or unauthorized post-petition transactions. Let us help you keep the money and property you have already received or to get you what you are due.
TIME LIMITS ARE IMPORTANT
There are short time limits in Bankruptcy which can defeat even a rightful claim. When you get notice of a bankruptcy filing, call us right away. 402-436-3030.