CREDITOR'S RIGHTS IN BACKRUPTCY

When a creditor receives a bankruptcy notice, the company may just write off the debt and try to move on with other paying tenants and clients. In many instances, creditors don’t understand that they have rights and legal options as to their claim against the debtor.

Your Business has Options

The creditor attorneys at Murphy Cordier Casale Axel PLC in Phoenix want you to know that creditors in bankruptcy are able to receive a portion of the distribution from the bankruptcy estate in accordance with the priority of their claim. Our attorneys also can represent you and your company in bankruptcy court on issues regarding the debtor’s plan in Chapters 11, 12, and 13 bankruptcy proceedings, as well as the liquidation of the debtor’s non-exempt assets and the approved payments from the assets of the estate by the bankruptcy judge.

Secured Creditors

A secured creditor will have the greatest chance of receiving relief from the automatic stay or adequate protection payments to prevent a decline in the equity available to secured their claim.

Our attorneys will help you determine if your claim is secured by the debtor’s assets. If so, you are a secured creditor with a lien against the bankruptcy estate. This provides your business with certain rights to the debtor’s property which has been used as collateral.

Frequently, a business will have these rights created and detailed in a deed of trust on real property, a security agreement, or a judgment lien. Our legal staff will review these documents and help you prepare your claim in bankruptcy court. We will monitor the progress of the debtor’s case and keep you informed of developments and outcomes. Staying on top of the case is critical to your receiving relief.

In addition to experience with creditors’ rights in bankruptcy, our attorneys have extensive backgrounds in real estate law, such as the acquisition and sale of commercial real estate, commercial landlord/tenant law, commercial leasing, easements and rights of way, and general real estate litigation. We represent secured and unsecured creditors in complex civil and bankruptcy matters. This includes mortgage defaults, breach of contract actions, and commercial torts.