Creditors’ Bankruptcy Rights
Contact us today at (910) 763-3626.
Realizing that someone who owes you money cannot pay you in full and on time is usually a very unsettling feeling. When a debtor enters bankruptcy, creditors must first determine the value and priority of their claims. Then, they must file a proof of claim with the bankruptcy court before the deadline in order to preserve their right to be paid. In a non-bankruptcy context, state law governs the order in which creditors will be paid while in bankruptcy matters, the Bankruptcy Code determines the order in which creditors will be paid. In order to maximize your recovery, you need an attorney who can review the facts giving rise to your claim, apply the law to elevate the priority of your claim if possible, and prepare your formal proof of claim for filing in a way that maximizes your prospects for repayment. Retaining competent counsel regarding creditors’ bankruptcy rights might make the difference between being paid in full and recovering merely pennies on the dollar.
Carter & Carter has extensive experience representing a wide variety of creditors, and we can give you and your business an idea of the range of your potential recovery. Secured creditors often need particularly complex legal advice in order to make sure that their claim against the bankruptcy estate is not avoided by the trustee, the debtor, or other creditors. In certain circumstances, secured creditors may seek relief from the bankruptcy court that will allow them to proceed with the sale of their collateral before the debtor has finished the bankruptcy proceeding. In other cases, secured creditors may have the right to receive payments for the value of collateral that is required to remain in the debtor’s possession. Secured creditors may also need experienced counsel to guide them through an adversary proceeding that challenges the priority of their claim.
Chapter 11 reorganizations sometimes restructure the terms of a debtor’s obligation to a creditor; for instance, in many cases a debtor can extend the time for repayment of a debt, and in other instances, a debtor may reduce the interest rate on an outstanding obligation. Secured creditors who find their claim subject to a cramdown need counsel who can guide the court through its analysis of the changes that a debtor proposes to the terms of the debt.
Carter & Carter has appeared on behalf of hundreds of creditors and has frequently obtained favorable terms of repayment for creditors whose claims have been challenged by the trustee, the debtor, or the debtor’s other creditors. Our experience will allow you to understand the way that the bankruptcy court will approach your claim, and we will provide you with financial projections that help you decide how to move forward and appropriately plan for the costs of pursuing your claim against the debtor.
If you are a creditor seeking repayment, please contact our office to arrange a consultation: (910) 763-3626.
See also: Learn more about our law services pertaining to Bankruptcy in Wilmington, NC.