Defending New York Creditors In Bankruptcy Proceedings
At The Law Office of Aaron M. Schlossberg, Esq., P.L.L.C., in New York, I 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. I often employ methods and means referred 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 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 lawyer, I will take all necessary steps to file a request to be included for copies of all further correspondence under Bankruptcy Rule 2002. I 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 that 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 that may be in place.
As your attorney, I 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. I 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 me 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, I 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 Code, creditors may pursue status as a preferred creditor, meaning they will be preferred to receive payments due when a debtor files. I aggressively work to help clients get the money they are owed.
Avoiding Having To Repay Debtors Due To Preference Actions
A “preference action” is a legal motion that 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.
Obtain Local Outside Counsel For Bankruptcy Defense · Call Me Now
From offices in New York, I 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 646-698-8752 or contact me online to schedule a consultation.