Services for Texas Business Bankruptcy Creditors
There are various methods for Business Bankruptcy Creditors to respond in a Chapter 7 or Chapter 11 Business Bankruptcy case. The best approach always depends upon the particular facts of a case. Business Bankruptcy Creditors in Texas should seek the advice of experienced counsel to determine their rights as a Creditor in bankruptcy and to maximize their potential recovery. At The Law Offices of R.J.Atkinson,LLC we represent both secured and unsecured Creditors in Houston, San Antonio, Austin, Dallas, and throughout the State of Texas. We may be able to assist in maximizing the recovery of your potential claim and protect your rights as a Texas Business Bankruptcy Creditor. Please contact us at 800-436-9056 for a free initial consultation regarding your potential claim as a Business Bankruptcy Creditor. There is no cost to evaluate your potential claim but don’t wait until it’s too late.
The following are a few things that can be done to make certain your rights are protected in a Business Bankruptcy proceeding.
Filing a Proof of Claim
Probably the most important component of being a Business Bankruptcy Creditor is not only having a claim but filing the claim properly and accurately with the Bankruptcy Court. Often the Debtor will list or schedule the debts owed to creditors but may list amounts inconsistent or less than the amount that is actually owed. The Debtor may also list claims in the full amount as disputed or may classify debts in a certain category or priority which will have a significant impact on how a creditor’s claim might be paid if at all. Properly documenting a proof of claim is an important component to any potential recovery. A Debtor can list or schedule the entire amount owed but can list it as disputed which leaves the burden to prove otherwise on the creditor. Similarly a Debtor can object to a proof of claim properly filed which again must be addressed formally by the creditor. Whether you choose to obtain legal counsel for representation or not consider at very least the filing of a proof of claim. Doing nothing at all can likely make for recovering less than you are due and sometimes nothing at all.
Attendance at the 341 Meeting of the Creditors
The meeting of creditors which is also called the §341 meeting or creditors meeting is required by section 11 U.S.C. §341 of the United States Bankruptcy Code at which the Debtor is questioned under oath by creditors, a trustee, examiner, or the U.S. trustee about his/her/their financial affairs. In the case of a Business Bankruptcy filing the principal officer, manager, member, agent, president or primary operator of the Debtor who signed the petition and schedules under penalty of perjury will be available to answer questions about them under oath. This is often the only time that a creditor or any party in interest can address the Debtor under oath without requesting a 2004 examination which is a separate action in the bankruptcy process allowing for deposition of any party involved in the bankruptcy. At the §341 meeting the Debtor’s attorney will also be present and will be able to answer questions about the filing. Basic questions often asked by creditors may involve how the debtor plans to reorganize in a Chapter 11 Bankruptcy or what happened to cause liquidation in a Chapter 7. These type of questions can be most helpful in determining not only the course of the case but the potential recovery of claims if any. The attendance at the §341 meeting of the creditors is often key to gauging whether or not a claim is likely to be recovered. Whether you or not you choose to obtain legal counsel for representation, consider that knowing how to proceed, knowing what questions to ask, and the ability to assess a case based on the Debtor’s schedules and responses at the §341 meeting are a matter of course for experienced Business Bankruptcy Counsel.
Relief from the Automatic Stay
Once a bankruptcy petition is filed, an automatic stay goes into effect by operation of law pursuant to 11 U.S.C. 362 without a court order. The automatic stay acts like an injunction against most all type of legal actions. This automatic stay freezes most legal actions against the Debtor with very few exceptions. However, if a lawsuit was about to go to trial, or if a foreclosure, turnover action, or eviction was about to occur, a creditor may have sufficient grounds to request relief from the automatic stay. This is done in the form of a Motion For Relief From Stay in the Bankruptcy Court. They are other occasions when a Motion For Relief From Stay can be filed depending upon the particular facts and circumstances of the case but it is important to know when it is appropriate and the proper procedures. Remember that Business Bankruptcy Creditors in Texas whether they are corporations and other business entities cannot usually represent themselves as plaintiffs in legal proceedings in Texas State Courts let alone Texas Bankruptcy Courts. The filing of a Motion to Lift Stay in a Bankruptcy proceeding is a matter of course for experienced Business Bankruptcy Counsel.
Business Creditor Services in Chapter 11 Bankruptcy Proceedings
In order to attempt to maximize your potential recovery and payments as a secured or unsecured creditor in a Chapter 11 Bankruptcy, The Law Offices of R.J.Atkinson,LLC can provide services specific to a Business Creditor in a Chapter 11 Bankruptcy which include;
- The Filing of a proof of claim either pre and/or post filing to properly and accurately document the amount of monies owed;
- The review and examination of the petition, schedules, and statement of financial affairs of the Debtor as well as any other proof(s) of claim filed by other creditors to determine the priority and accuracy of such as known by the Business Bankruptcy Creditor as well as to determine the potential viability of any proposed plan;
- The attendance at the Meeting of Creditors also known as a §341 meeting (11 U.S.C. §341) to evaluate and listen to the position and comments of the United States Trustee's Office as well as evaluate and listen to the comments of the Debtor’s principal, president, CEO, or chief operating officer under oath, and to listen and evaluate the commentary and position of the Debtor via the attorney for the Debtor in order to properly evaluate the case and the likelihood of recovery or being paid;
- The Filing for a Request for Notice in order to receive copies of all pleadings pursuant to Bankruptcy Rules 2002(a)(b), 9010(b) and 3017(a). Request for Notice allows a Business Bankruptcy Creditor to closely monitor the Debtor if you or your Company is continuing to do business with the Debtor;
- Motion the Bankruptcy Court to require payment of any post-filing service(s) or products sold to the Debtor during the pendency of the Bankruptcy case;
- Attendance and Participation in cash collateral hearings that could ultimately affect payment of any pre or post filing claims of the Business Bankruptcy Creditor;
- To review all debtor in possession operating reports as filed with United States Trustee’s Office;
- To evaluate any and all recommendations of a creditors' committee should one be appointed or is functioning;
- Filing of a Motion to Lift Stay for secured creditors pursuant to 11 U.S.C. §362 to seek the right to foreclose on property or repossess collateral;
- The Filing of a Right of Reclamation Claim if appropriate;
- The filing of a Motion to Lift Stay pursuant to 11 U.S.C. §362 to proceed or move forward against the Debtor in certain pre-petition lawsuits or appropriate post-petition actions;
- The evaluation of all Disclosure Statements and Plans of Reorganization filed by the Debtor as well as attendance at the Disclosure Statement and Confirmation hearings;
- To determine a decision whether to vote for or against a Plan of Reorganization as proposed by the Debtor or other party;
Business Creditor Services in Chapter 7 Bankruptcy Proceedings
In order to attempt to maximize your potential recovery and as a secured or unsecured creditor in a Chapter 7 Bankruptcy, The Law Offices of R.J.Atkinson,LLC can provide services specific to a Business Creditor in a Chapter 11 Bankruptcy which include;
- The Filing of a proof of claim upon the United States Trustee to properly and accurately document the amount of monies owed, and if your interest is as a secured creditor we can assist to properly document and file a secured proof of claim as well as determine how your collateral will be treated in the Chapter 7 proceeding;
- The review and examination of the Chapter 7 petition, schedules, and statement of financial affairs;
- The preparation of a reaffirmation for execution by the Debtor and Debtor’s counsel should your collateral be claimed as exempt;
- The filing of a Motion to Abandon and-or a Motion to Lift Stay pursuant to 11 U.S.C. §362 in order to allow you to pursue your remedies as allowed by Texas State law if your collateral is a non-exempt asset;
- File an Objection or to Object to the Debtor’s exemptions claimed if they appear to be inappropriate pursuant to current Federal or Texas State laws;
- To determine whether or not your claim is non-dischargeable pursuant to 11 U.S.C. §523;
- To file an adversary proceeding should any condition warrant such;
- To determine whether or not the Debtor or it’s officers are guilty of any wrongful act or conduct that would bar a discharge pursuant to 11 U.S.C. §727;
- The filing of a Motion to Lift Stay pursuant to 11 U.S.C. §362 to proceed or move forward against the Debtor in certain pre-petition lawsuits, To attend hearings, examinations, and meetings on Motions, matters, and proceedings pertinent to the Bankruptcy filing;
Chapter 11 Business Bankruptcy tends to be very complex and time consuming as can Chapter 7 Business Bankruptcy if there are contested matters, fraud, or other issues. Depending on the facts of the particular case Texas Business Bankruptcy Creditors considering representation of their interests by an attorney who is experienced in handling Business Bankruptcy may achieve a better outcome than simply representing themselves. At The Law Offices of R.J.Atkinson,LLC we can evaluate the case at no cost and give you or your company an honest appraisal of the case and your claim as a Texas Business Bankruptcy Creditor. If you or your company have questions about Creditors Rights in Bankruptcy anywhere in the State of Texas please contact us at 800-436-9056 for a free initial consultation to discuss your company’s legal options. Timing is everything, don’t wait until it’s too late.