Bankruptcy and other insolvency-related matters can be extremely complex, especially if there are many parties involved. Whether you’re a creditor, debtor or trustee, a single slip-up could expose you to costly liability, and it is crucial that you have experienced legal counsel to identify the important issues and aggressively protect your interests.
In previous posts, we’ve discussed how debt-laden businesses can find relief through Chapter 11 or Chapter 7 bankruptcy. Today let’s address the issue of recovering what creditors are owed.
If there are 20 or more creditors to an estate, then the 20 largest creditors may form a committee that can work together on behalf of all of the creditors. In any case, having legal counsel with knowledge of bankruptcy law and trial experience can give creditors the advantage they need in order to collect.
To recover what a creditor is owed, it may be necessary to investigate the corporate records of the party filing for bankruptcy. A legal representative can also interview company executives and officers in the process of assessing the company’s reorganization plan. In turn, it may be necessary to object to the Chapter 11 filer’s plan for reorganizing.
Sometimes bankruptcy fraud is an issue, as is breach of fiduciary duty on the part of a trustee. If you’re a creditor, then it is a good idea to have a full-service legal team that can identify these problems and protect you from potentially negative outcomes.
Shulman Bastian Friedman & Bui LLP started out as a bankruptcy boutique law firm, and our lawyers have provided legal counsel to businesses and individuals in jurisdictions throughout California and other states. We’ve been helping clients resolve disputes and achieve positive results for more than two decades, and we invite you to learn more about our firm by exploring our areas of legal practice: business bankruptcy, litigation and transactions.