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Posts tagged "creditor's rights"

Understanding a Secured Creditor's Right to 'Adequate Protection'

debt.jpgA secured creditor is a lender that takes on collateral in exchange for extending credit. If the debtor, for whatever reason, is unable or unwilling to repay their debts to a secured creditor, then the lender can take legal action to obtain the specific asset for which they possess collateral.

Set-Off Rights Can Protect Some Creditors

creditor.jpgBusiness bankruptcy cases are challenging for all parties involved, including the creditors. This especially true for businesses that became a creditor without ever actually lending money. For instance, when a company enters bankruptcy, it often has active accounts payable or accounts receivable with other companies. This leads to some businesses becoming creditors in bankruptcy without ever engaging in the traditional lending business. It can also create a situation where a company both owes money and is owed money, by a company in bankruptcy. This creates a very confusing legal situation. Fortunately, a concept known as 'set-off rights' found under Section 553 of the Bankruptcy Code can help to clarify the situation.

Understanding a Creditors' Right to File for Bankruptcy Protection

creditors rights.jpgIn the vast majority of cases, companies voluntarily file for bankruptcy protection. While bankruptcy is generally associated with providing protection to debtors, it also provides some important legal protections for creditors. Indeed, creditors even have the right to file an involuntary bankruptcy petition. By doing this, creditors may be able to force a company into bankruptcy. While this does not happen often, the right to do so is incredibly valuable for creditors. As such, it is important to discuss what you need to know about involuntary bankruptcy petitions.

What Is a Voidable Preference (Unfair Preference)?

unfair preference.jpgTypically, there are warning signs that indicate that a business will soon file for bankruptcy protection. When creditors begin to see these signs of immense financial distress, they tend to dramatically intensify their collection efforts. Of course, this makes sense. After all, creditors want to try to ensure that they are able to get paid back while there is still money available.

Understanding Fraudulent Transfers in California

fraud.jpgDebtors are not allowed to 'give away' their assets in order to protect those assets from creditors. This is an issue in many bankruptcy cases, as some debtors try to find ways around the system. It is critical that creditors are fairly protected from any fraudulent transfers. Fortunately, California law offers creditors vital protections under the Uniform Fraudulent Transfer Act (UFTA). If you are a creditor in California, and you believe that a debtor has fraudulently transferred assets that you had a legal claim to, you need to contact an experienced San Jose creditors' rights lawyer attorney as soon as possible.

What a Recent Supreme Court Decision Means for Creditors

creditors-rights.jpgOn 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.

California Debt Collection: What Creditors Need to Know Before Settling Their Claim

debt-settlement.jpgIn many debt collection cases, the outstanding debt is settled before any court judgment is actually entered against the debtor. In an ideal world, this would be an unquestionably positive outcome for creditors. After all, debt collectors are simply looking to recoup the money to which they have a legal claim. Unfortunately, in reality, sometimes debtor parties do not follow through with the terms of debt settlement agreements. Further, if the settlement process is not handled properly, creditors could find themselves in an undesirable situation. Indeed, creditors could even lose important legal rights. Before settling a major outstanding debt, you should first consult with an experienced San Jose commercial debt collection lawyer.

Court Rules that Debtors Infringed on Creditors' Rights in San Jose Bankruptcy Case

busness-creditor.jpgRecently, the Northern California Record reported that five different debtors made unlawful modifications to their Chapter 13 bankruptcy debt restructuring plans. More specifically, the debtors failed to give proper notice to the bankruptcy trustee and creditors. Due to this, the creditors lost out on their right to object to the plan. The right to object is a valuable tool for creditors and it must be protected. If you are a California creditor and you have questions about your right to object, please contact an experienced San Jose creditors rights attorney today to discuss your legal options.

California Creditors' Rights: Executing a Judgment

creditor-rights.jpgIn many cases, creditors are forced to go to court to seek a judgment against a debtor. Once you obtain a judgment, the debtor may simply decide to pay you what is owed. If so, that is great. However, this is often not what happens. In fact, getting a legal judgment is often closer to the beginning of the debt collections process than it is to the end of it. There is good news: a judgment gives creditors many powerful legal tools that can be used to seek repayment. Of course, it is important to understand certain basic information regarding executing judgments in California as a creditor.

California Business Bankruptcy: What to Expect at a Meeting of Creditors

creditors meeting.jpgAll businesses that file for bankruptcy protection will eventually face a meeting of creditors. Also known as a 341 meeting, this meeting is required under the Bankruptcy Code. The broad purpose of the meeting is to ensure that the filing business has fairly and honestly represented its assets and liabilities to the creditors. If your business is soon facing a 341 meeting in Silicon Valley, you should contact an experienced San Jose business bankruptcy attorney today to further discuss your legal rights and options.

  • Santa Clara County Bar Association | 1917
  • American Inns of Court
  • CWL | California Woman Lawyers
  • Bay Area Bankruptcy | Forun
  • The State Bar of California
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