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 mechanic's lien, also known as a construction lien, is an incredibly powerful collection tool that is available to contractors and subcontractors in California. In fact, any party that provides materials or labor in an effort to help improve real property may seek a mechanic's lien against the property in the event that they are not fairly paid for their contribution. Essentially, a mechanic's lien will give a person or company a creditor's interest in that property. Of course, if the owner of the property declares bankruptcy, things can quickly become extremely complicated. If your company is dealing with a mechanic's lien and a bankruptcy filing by the party that owns the property, please contact an experienced San Jose creditors' rights lawyer for immediate legal assistance.
Debtors 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.
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.
In 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.
The United States Bankruptcy Code includes a 'strong-arm clause' which gives a bankruptcy trustee or debtor in possession (DIP) important powers. Known as avoidance powers, they can give the trustee or DIP the authority to resist certain creditor claims. This most frequently occurs when a company enters into an agreement with a creditor immediately before the company enters bankruptcy. While those pre-bankruptcy agreements are still enforceable against the debtor company, they will need to be considered within the context of the claims of competing creditors.
The Perishable Agricultural Commodities Act (PACA), which was passed in 1930, regulates the sale of fruits and vegetables. PACA covers a wide variety of situations, including what happens in the event that a produce buyer goes bankrupt. The Act provides sellers with powerful tools to collect payments and also has major ramifications on the creditors that lend to businesses that are within the scope of the regulations. California is one of the nation's leading producers of fruits and vegetables and it is critical that creditors within the state understand how PACA might impact their rights. If you have any questions about PACA and bankruptcy, please contact an experienced San Jose business bankruptcy attorney for immediate legal assistance.
The primary purpose of bankruptcy is to allow a business, or an individual, an opportunity to get a fresh start. Throughout bankruptcy, highly burdensome financial obligations can be restructured so that a more sustainable path forward can be found. Accordingly, most forms of debt are dischargeable in bankruptcy. However, there are some cases in which some types of debt may be deemed non-dischargeable, specifically when a debt was incurred by fraud or through willful and malicious conduct. Creditors can take legal action to protect their rights to recover these kind of debts. If you have any questions or concerns about nondischargeable debts, please contact an experienced California creditors' rights attorney for immediate assistance.
Preference litigation refers to a lawsuit that has been filed by a debtor party, or a bankruptcy trustee, in an attempt to seek the return of payments made by the debtor company before it entered bankruptcy. Facing preference litigation is often extremely frustrating for creditors. If you are dealing with a preference claim, contact an experienced San Jose creditors' rights lawyer for immediate legal help.