Creditors often hire counsel in bankruptcy proceedings to ensure that their interests are represented. The range of services we offer to our creditor clients in a bankruptcy range from mild to very aggressive.
Mild:Creditors will hire us to keep an eye on the docket and advise them of major updates in the case. We will file a “proof of claim” specifying the exact amount that was owed by the debtor to our client as of the bankruptcy filing date.
Medium:Secured creditors usually will need to have a “motion for relief from automatic stay” filed to enable them to initiate or continue an action for foreclosure or repossession of collateral.
Aggressive:For situations in which the debtor’s situation is murky, we can help our clients improve their legal position by challenging the debtor’s schedules, taking the debtor’s deposition, filing proceedings to challenge another creditor’s liens, and so forth.
Very Aggressive:For more advanced situations, it is possible for a creditor to significantly change the course of the bankruptcy case. For example, in certain circumstances we can file a lawsuit (called an adversary proceeding) to get our client’s debt deemed not discharged, which means that the debt survives the bankruptcy and can continue to be collected on, which is a very powerful result. In other circumstances, we can get the entire case thrown out, or even have all of the debtor’s debt deemed not dischargeable. In a Chapter 11 case, we can ask the Court to install a third-party trustee installed to manage the daily operations of the business debtor (which basically acts as a receivership), or even get the case converted to a Chapter 7.
Many powerful advanced tools are available to creditors in a bankruptcy. Call us today at (702) 614-0600 to discuss your situation.