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Creditors Rights and Bankruptcy


Protection and Enforcement Of Creditor Rights In Bankruptcy

Bankruptcy protection provides a powerful national (even international) forum for the protection of individuals and entities with creditor issues. The Bankruptcy Code establishes significant statutory and court procedural requirements, restrictions, rights and powers for a debtor once a Bankruptcy petition is filed.

At the same time, the Bankruptcy Code establishes a veritable thicket of complex obligations, rights, responsibilities and potential risks for the unwary who have, or even have had in the past, a relationship with a bankruptcy debtor. This is so not only where the debtor owes money, but includes virtually every other business relationship imaginable. Landlord or tenant, equipment lessor or lessee, contract party, secured creditor, mortgagee, intellectual property licensor or licensee, money owed, employee or employer, vendor, shipper, contactor, subcontractor, or material man – all can be implicated in a bankruptcy case. Many of the creditor’s rights and protections must be timely and properly raised to be enforced. The lack of diligent action can lose, or severely diminish, the creditor’s rights and potential recoveries in a bankruptcy situation. Our firm is very well positioned to advise those who must deal with a bankruptcy debtor and help identify and enforce their rights. We practice in all the state and federal courts of Ohio, as well nationally in bankruptcy matters as our clients’ circumstances may require.

Counsel Respecting Enforcement Of Creditor Rights

As with much of business, avoiding a potential problem is much more efficient that solving the problem after it arises. But this approach requires being aware of potential problems - and importantly potential solutions - in the first place. Our firm is especially aware of the implications to for our clients should a business relationship or intended transaction become the subject to a subsequent bBankruptcy. , and We regularly and consistently counsel our clients about choices that can minimize maximize their exposure position and options in such a situation, as well as be able make choices and undertake strategies that can maximize their position and enforce their rights. We are also well-prepared to enforce those positions and options should the need arise, whether in bankruptcy proceedings, court proceedings, or private rights enforcement proceedings.

Secured Creditor Rights Enforcement and Protection

Secured creditors enjoy special protections in bBankruptcy, but only if all provisions to perfect a securedthe secured creditor’s right must hasve been timely perfected under applicable state law.performed to enjoy that status in a Bankruptcy. Accordingly, attention to and completion of all requirements for perfection of a security interest will be crucial. This ese means not only the preparation and signing of all appropriate documentation, including but completion of many details, such as proper notarization of documents, but also timely proper and complete public filings, and similar considerations, and many other similar details. Likewise, once a Bankruptcy bankruptcy is filed, even a perfected secured creditor’s rights must be properly and timely asserted, or the benefits of those special rights can be lost or substantially reducedrendered meaningless. Whether enforcing a creditor’s rights to adequate protection, to recovery of collateral or to restricting or preventing use of cash collateral, our firm is aware of the burdens and hurdles, potential risks and rewards that arise in these situations, as well as the requirements to accomplish them., and We have effectively guided our clients in enforcing their rights and protecting their positions under difficult circumstances.

Defending Bankruptcy Litigation

Among the most frustrating aspects of Bbankruptcy, for creditors and non-creditors alike, are the very powerful rights that allow the debtor or trustee to essentially undo (avoid) and recover for the Bankruptcy case the payments made and property transferred, or its value, and certain payments made by the dDebtor before the bBankruptcy case was filed, in some cases years before. The These rights may engender demands debtor may demand return of the funds, or even file a to or lawsuits against a creditor or non-creditor to recover preferences, state and federal fraudulent conveyances (whether intentional or not), even undo or recover the value of sales transactions, setoffs, debt adjustmentsforgiven debt, the release of mortgages or liens, or even the termination of leases and contracts rights by the dDebtor that occurred during the period before the Bankruptcy was filed. For many years, our firm has defended these types of avoidance and recovery actions, as well as successfully asserted defenses, claims and other rights of our clients, in bBankruptcy courts. Importantly, with a deep understanding of these types of potential risks, issues, and costs, our firm provides practical and knowledgeable counsel and advice so as to minimize these risks for our clients before the potential bankruptcy becomes a reality of a Bankruptcy filing occurs.

Dealing with Insolvency Issues

We represent clients who are involved in negotiations with financially challenged troubled persons, whether they are facing bankruptcy or notboth before and after that challenged person may be forced into Bankruptcy. The nature of breadth of these topics that arise in these negotiations is really unlimited, and can has included: lLandlord and tenant rights andrights and protections, defending claims to recover preferences, defending claims for fraudulent conveyances, defending claims or lien avoidances, protecting use of cash collateral, enforcing proofs of claim, objection to claims allowance; representing clients in adversary proceeding and contested matters litigation, enforcing proofs of claim, enforcing lease rights and contract assumption or rejection and damages claims, enforcing creditor rights in chapter 13 plan proceedingsrights, asserting with objections to debtor discharge and claim dischargeability. We have also enforcing claims and preparation of proofs of claim, lease and contract assumption or rejection and damages, enforcing creditor chapter 13 rights, asserting with objections to discharge and dischargeability represented representation of official creditors committee, either as lead counsel or local counsel, and special conflict counsel counsel, . We are well-positioned to provide our clients not only advice, but also knowledgeable and experience and practical business solutions for potential transactions or troubled business relations.