Dworken & Bernstein represents individuals, businesses and commercial clients, creditors, and banks in handling creditor claims and lawsuits. Our attorneys always look for ways to resolve creditor issues outside of Bankruptcy Court. Our litigators can also assist with pending lawsuits in state and federal courts.
When businesses file for bankruptcy, they will need to determine all of their outstanding debts and obligations to disclose to the court. Whether, and to what extent, their creditors will obtain repayment will depend on whether the creditor is a secured or unsecured creditor, and if unsecured, the priority of those claims. Secured claims are those debts that also include a lien on a piece of property such that if the debt is not paid as promised, the creditor is entitled to the property. Unsecured claims are those debts that are not secured by a lien on any property. Unsecured claims are further classified as priority or nonpriority. Some unsecured claims may not be dischargeable in bankruptcy. Our attorneys can advise your business as to what manner of bankruptcy best suits your needs, and what claims will be dischargeable in the process.
Not only should businesses seek counsel regarding creditor claims, but creditors should also seek counsel to ensure that their interests in receiving the maximum repayment from a debtor are protected throughout the debtor’s bankruptcy process. With respect to secured claims, creditors are typically entitled to repayment of the lesser of the outstanding debt amount, or the secured property. Claims of unsecured creditors are more difficult depending on the priority they receive. Dworken & Bernstein can assist creditors in filing their proof of claim and attending creditor meetings to ensure that their rights are protected. If the debtor is seeking a discharge, the creditor may want to file objections. If a creditor was paid shortly before the debtor filed for bankruptcy, the creditor may be asked by the bankruptcy trustee to return the funds, as bankruptcy prohibits the preferential treatment of creditors. Our attorneys are well-versed in the nuances of defending these issues.
Dworken & Bernstein can help you and your company understand your legal position, determine your alternatives, and help you successfully work through the bankruptcy process, whatever your stake may be.
*The law requires that we tell you that we are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.