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Posts tagged "debt collection"

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.

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.

When a Creditor Violates an Automatic Stay

debt-collector.jpgCalifornia businesses that file for bankruptcy protection are generally granted an automatic stay. In simple terms, an automatic stay provides the filing business with temporary relief from debt collections efforts. This includes relief from creditors that are seeking enforcement a judgment, foreclose on a property or the collection of debt in any other manner. Creditors are legally obligated to put all of those collection efforts on temporary hold. This is extremely useful for the filing company as it gives that business some space to devise a workable restructuring plan. However, creditors do not always abide by the automatic stay. If your company has been granted an automatic stay, and a creditor is continuing to take collection action, you need to speak to an experienced San Jose business bankruptcy lawyer immediately. Your company's legal rights are being violated.

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.

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.

When Can You Get a Relief from a Stay?

creditor rights.jpgWhen a business files for bankruptcy protection, they are generally granted an automatic stay. This stay temporarily protects the firm that filed for protection from most legal actions that could be taken by a creditor. This could include the halting of a foreclosure, halting any garnishment or putting a stop on any other type of debt collection activity. However, there are some scenarios where a creditor may be able to get relief from an automatic stay. If you have questions about motions for a relief from a stay, or automatic stays in general, please contact an experienced San Jose creditors' rights attorney for immediate assistance.