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 bankruptcy creditor 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 bankruptcy creditor lawyer in Kalamazoo & Grand Rapids 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.