Creditor Representation in Bankruptcy Proceedings
Business owners understand the importance of trust. When you sell products or services and send an invoice, you expect to be paid in a timely manner, and you expect to maintain your bottom line. Once your debtor files for Chapter 7, 11 or 13 bankruptcy, we recommend working quickly to reduce potential losses and minimize liabilities.
Creditors Must Take Specific Steps to Receive Payment for Outstanding Claims
Our attorneys in Grand Rapids and Kalamazoo can perform a complete review of assets and liabilities.
- We will determine whether the debts owed to you are eligible for discharge.
- We will seek appropriate collateral asset liquidation or return.
- We will protect your rights vis-a-vis other creditors and the bankruptcy court.
- We will help you file a proof of claim with the court before the deadline for unsecured claims.
We will also search for signs of hidden assets, misrepresentation or fraud. Our firm is committed to taking action to protect your bottom line. If you are a creditor with a debtor in bankruptcy, please call us at (888) 461-7744 or email us to schedule a consultation with a lawyer at our firm.
Options for Recovering From Debtors Who Are in Bankruptcy
When our attorneys represent creditors in bankruptcy, we work quickly. We implement a number of strategies, depending on the situation:
- We may demonstrate that the debt is exempt from the bankruptcy due to fraud or misrepresentation on the part of the debtor.
- We may raise objections to the reorganization plan.
- We may initiate a repossession of leased property.
It Is Important to Understand the Bankruptcy Process
When a consumer or small business files for bankruptcy, the automatic stay — whether you have been informed of it or not — will stay or stop all collection actions and also protect a co-debtor in a Chapter 13 bankruptcy case. Violation of the stay may result in sanctions, which will be enforced by the court.
Depending on the nature of your claim, it may be advantageous to attend the Meeting of Creditors. This is a meeting of the debtor, the debtor's legal counsel and the bankruptcy trustee. Creditors are not required to attend, but the meeting can lend inexpensive insight into how to proceed.
The debtor under Chapter 13, for example, agrees to repay certain obligations through negotiations with creditors. If payments are not made or obligations are not met, we can file a motion to nullify the automatic stay.
Depending on the circumstances, Willis Law may begin an adversary proceeding within bankruptcy court to pursue recovery of assets.
Issues of Fraud in Bankruptcy Litigation
If a debtor took out a loan without any intention of repaying it, that loan is generally not dischargeable in bankruptcy. We will investigate any possible fraud or misrepresentation stemming from the original contract or sale.
If we uncover information that the debtor intended to accept delivery of the product and never pay you, we may be able to pursue payment outside of bankruptcy court. We work on a case-by-case basis to determine the best possible solution for your case.
Speak With an Attorney at Willis Law Today
Our goal is to protect your interests as a creditor and recover as much money as we can for you.
To schedule a consultation at one of our convenient West Michigan law offices, please call us at (888) 461-7744 or contact us online. One of our experienced lawyers can discuss your concerns and work with you to develop a strategy to maximize recovery of monies that are owed to you.
*We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
Michael J. Willis J.D., C.P.A.
Shaun P. Willis J.D.
Frank D. Willis J.D.
Donald H. Smith
Mariko C. Willis
Samuel R. Gilbertson J.D.
Verelle Kirkwood J.D.
Kristyn Meylenberg J.D.