All 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.
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.
When 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.
Obtaining a court judgment against a business or consumer is only one part of the recovery process, especially if the party you obtained a judgment against no longer has any assets after the judgment is entered. You spent all this money on litigation costs and only to spend more money to find alternative ways to recover your judgment. However, prior to initiating the legal process, you should consider obtaining a writ of attachment, which will almost certainly ensure recovery, should judgment be entered in your favor.
When you are engaged in the business of supplying goods, you have the ability to reclaim these goods when the buyer fails to pay. In rare instances, buyers will purchase more goods than usual, stock up inventory, then file for bankruptcy in an effort to refuse paying for the goods. When the business to which you supply goods becomes insolvent, it may seek protection of federal bankruptcy laws in order to prevent you from recovering any money owed. Regardless of the situation, no business owner wants to ship goods to buyers for free, without payment.