New York Lawyers For Creditor Defense In Bankruptcy

At The Law Office of Aaron M. Schlossberg in New York, we believe that business creditors need more than legal knowledge when defending against losses in bankruptcy court; they need a focused commitment to protecting their financial interests, as well.

Bankruptcy poses collections problems, but you still have rights and options. We often employ methods and means we refer to collectively as "bankruptcy defense."

Handling Every Legal Detail

Upon the initial bankruptcy filing, the debtor's legal counsel is required to provide all creditors an official notice of commencement. If your business has received such a notice, it is important to talk to a creditor's defense attorney at The Law office of Aaron M. Schlossberg as soon as possible. The debtor will be under no further legal requirement to notify your company of any further proceeding or legal motions.

As your firm's creditor defense lawyers, we will take all necessary steps to file a request to be included for copies of all further correspondence under Bankruptcy Rule 2002. Our firm will keep your firm notified of all court activity regarding your case.

Chapter 11 First-Day Hearings

When a business debtor files for reorganization under Chapter 11, the debtor will be entitled to file legal motions petitioning the court for authority to treat various creditors differently, for specific reasons which must accompany the motion. A "first-day hearing" refers to the court hearing in which the bankruptcy trustee will review the motions and rule on granting the requested rights.

Typical motions include inter alia authority to pay certain debts critical to the ongoing operations of the business. These may include wages and benefits, outstanding invoices to critical vendors and sales tax debts. Other motions include petitions to use cash collateral or debtor-in-possession financing to repay debts. If approved by the court, these authority rights may significantly affect the priority in which creditors are repaid as part of the debt reorganization, as they often include stripping collections actions such as liens which may be in place.

Our attorneys will review the debtor's motions and attend the first-day hearing to strongly advocate on your behalf, in opposition to any motions that may negatively affect your priority for repayment.

341 Creditors Hearings

When an individual debtor files Chapter 7 or Chapter 13 bankruptcy, the trustee will schedule and conduct a 341 creditors meeting. This firm will represent you at the 341 creditors meeting, a fact-finding proceeding where the trustee conducts an investigation into the debtor's property and finances to ensure there is no bankruptcy fraud.

Depending upon the outcome of the 341 creditors meeting, it may be possible to make a motion with the bankruptcy court for a 2004 exam. A 2004 exam will allow us to delve deeper into the financial history of your debtor by requesting disclosure of records such as bank statements, tax returns, profit and loss reports, etc.

Among other things, through motion practice and other forms of advocacy, our lawyers can also attempt to have your debt exempted from discharge and file objections to property that your debtor is attempting to have exempted from the bankruptcy proceedings.

Making Sure You Receive Preferred Creditor Status
Under U.S. Bankruptcy Codes, creditors may pursue status as a preferred creditor, meaning they will be preferred to receive payments due when a debtor files. Our lawyers aggressively work to help our clients get the money they are owed.

Avoiding Having To Repay Debtors Due To Preference Actions

A "preference action" is a legal motion which allows a debtor entering bankruptcy to sue creditors to recover any payments made within the previous 90 days prior to filing for bankruptcy. If the trustee grants the motion, all creditors named will be required to repay all money.

Local Outside Counsel For Bankruptcy Defense · Call Us Now

From offices in New York, our business law attorneys represent clients at 341 creditors hearings in New York City bankruptcy courts and throughout the state. Call The Law Office of Aaron M. Schlossberg, Esq., P.L.L.C., at 212-256-9322 or contact us online to schedule a consultation with an attorney.