Just as debtors have legal rights in the bankruptcy process, so do creditors. The specific rights depend on whether a given debt is secured or unsecured, and the priority of the debt relative to debts owed to other creditors. Working with an experienced creditors' rights bankruptcy attorney, you - the creditor - can ascertain your exact legal rights even as a debtor liquidates assets in Chapter 7 bankruptcy or a business reorganizes debt via Chapter 11 bankruptcy.
A preference action refers to a lawsuit brought under the U.S. Bankruptcy Code in which a creditor or bankruptcy trustee seeks to get pre-bankruptcy payments reversed. Under U.S. law, bankruptcy courts can automatically review all payments made by the filing business, to any party, within the last 90 days before the bankruptcy petition was filed. Courts have the authority to force individuals and companies that received inappropriate payments to compensate damaged creditors. In this post, our top-rated San Jose business bankruptcy attorneys discuss one of the common defenses that can be used to fight against preference lawsuits: contemporaneous exchange for new value.
On May 16th, 2016, the Supreme Court of the United States issued an important opinion in the case of Husky International Electronics, Inc. v. Ritz. While this case may not have received as much media attention as many other high profile cases from that last year, it has critical implications for creditors and debtors. In the decision, the court broadened what debtor actions qualify as 'fraud' in a bankruptcy case. If you are a California creditor and you believe that your interests have been harmed by a bankruptcy debtor's fraud, please contact our experienced San Jose creditors' rights attorneys today for aggressive legal assistance.
Sometimes, when you do business with multiple companies, chances are that a few of them will file for bankruptcy because not all businesses are successful. When you find out that a company you have been doing business with has filed for bankruptcy, the first question you may ask yourself is whether you want to keep doing business with them or terminate the relationship.