Let a Miami Creditors’ Rights Attorney Represent You in All Bankruptcy Matters
Businesses struggling with debt or that have become insolvent and can’t continue will seek protection and help through bankruptcy, often at the expense of their creditors. Business creditors are not without rights or power in a bankruptcy proceeding, however. Should they choose to do so, creditors can actively participate in the bankruptcy process, letting their voice be heard and protecting their interests to the extent permissible. From their offices in Miami and Fort Lauderdale, the business bankruptcy litigation attorneys at Edelboim Lieberman represent secured and unsecured creditors in Chapter 7, Chapter 11 and Chapter 13 cases in South Florida. Creditor representation in bankruptcy is just one more way we look out for our business clients and protect their rights and interests. If your business interests stand to lose because of another party’s bankruptcy filing in Miami, call a Miami creditor’s rights attorney at Edelboim Lieberman to discuss your options and decide whether and how to intervene to protect your rights.
Below are some of the ways our lawyers can protect your rights as a creditor in a South Florida bankruptcy proceeding.
Get relief from the automatic stay
The moment a business files for bankruptcy, the court implements what is known as an automatic stay. This provision of bankruptcy puts an immediate halt to all collection efforts on the part of a creditor to collect on a debt owed by a party who has filed for bankruptcy. The automatic stay is a powerful tool and is one of the main protections offered by a bankruptcy filing. The automatic stay prevents a creditor from initiating or continuing any collection efforts, including lawsuits, collection of judgments, repossessions, foreclosures, placing or enforcing liens, garnishing wages, even making phone calls or sending letters demanding payment. The automatic stay is comprehensive and complete.
The automatic stay is not, however, omnipotent. It is often possible for creditors to approach the court with a motion arguing for relief from the stay. If granted, the creditor can resume collection efforts while the bankruptcy is pending. Creditors who fail to seek relief from the stay risk having their debts adjusted, put on a payment plan, or discharged (eliminated).
Take an active role in the meeting of creditors
An early stage in the bankruptcy process is the meeting of creditors, also known as a 341 meeting after its section in the U.S. Bankruptcy Code. The meeting is held by the bankruptcy trustee, who invites the debtor’s creditors to attend and question the debtor regarding issues such as the debtor’s assets, liabilities, income, collateral property (for secured debts), and the debtor’s ability or lack thereof to repay the debt.
Our creditors’ rights attorneys can counsel you on whether it would be beneficial in your case to attend the meeting of creditors and put questions to the debtor. If you decide to attend, your Miami creditor’s rights attorney can prepare you for the meeting and attend with you or appear on your behalf.
Participate in the formulation of the plan
A crucial part of a Chapter 11 or Chapter 13 bankruptcy is the development of a plan of reorganization. Once the plan is approved by the bankruptcy court, creditors are obligated by law to abide by its terms, even if the plan dilutes their interest. Creditors have the right to participate in the plan’s development if they choose. The Miami creditors’ rights attorneys at Edelboim Lieberman can help you take an active role in the development of the plan and look out for your best interests. If a proposed plan appears to be unduly detrimental to your interests, our lawyers know how to properly object to the plan on your behalf before it gets approved.
Our Miami Creditors’ Rights Attorney Representing Secured & Unsecured Creditors Throughout South Florida
Our creditor’s rights attorneys are dedicated to protecting creditors’ rights inside and outside of bankruptcy court. Whether you are a lender, mortgagee, a secured creditor, an unsecured creditor, landlord, or other creditor seeking to maximize your recovery from a bankruptcy estate, we are positioned to deliver effective legal counsel.
Our South Florida creditors’ rights law firm handle cases involving:
- Objections to proposed Chapter 11 or Chapter 13 plans
- Objecting to and negotiating for the use of cash collateral
- Obtaining adequate protection from debtors in reorganization cases
- Protecting secured creditors’ rights in 363 sale proceedings
- Relief from stay motions which allow debt collection efforts, foreclosure, or lawsuits to resume
- Adversary proceedings to exempt debt from discharge and to deny a debtor from obtaining a discharge
- Preparing and filing proof of claims for creditors
- Defending creditors in adversary proceedings brought by other parties
- Defending creditors in actions brought by bankruptcy trustees
- Representing creditors in assignment for benefit of creditor cases
FAQs: Protecting Creditors’ Rights in Bankruptcy Proceedings
How can creditors avoid having their clients’ or customers’ debts discharged in bankruptcy?
Creditors have a variety of options for protecting their interests in clients’ and customers’ bankruptcy proceedings under Chapter 7, Chapter 11 and Chapter 13. However, determining what needs to be done can be challenging, and many of the mechanisms for protecting creditors’ rights under the Bankruptcy Code are extremely complex. If your company needs to protect its ability to collect an outstanding debt in a client’s or customer’s bankruptcy, we encourage you to speak with a Miami creditors rights attorney at Edelboim Lieberman promptly.
What is a proof of claim, and how do I file one?
A proof of claim is a formal filing in a federal bankruptcy proceeding that indicates a creditor’s claim to a portion of the debtor’s bankruptcy estate. The proof of claim form (Form 410) requires several pieces of information about the creditor’s claim, and creditors must attach various forms of substantiating documentation as well. The specific attachments a creditor must file depend on the nature of the debt (i.e., whether it is secured or unsecured), whether the debt includes interest or other charges, and various other factors. A Miami creditors rights attorney at Edelboim Lieberman can assist your company with preparing and filing its proof of claim in the appropriate court.
What is a 341 meeting in a bankruptcy case?
A 341 meeting, or meeting of creditors, is a key step in a federal bankruptcy case. The debtor is required to attend, and creditors may choose to attend in order to gather information about the debtor’s assets, liabilities, sources of income and overall financial condition.
Attending the 341 meeting is often critical for creditors seeking to make informed decisions about how to approach the remainder of the bankruptcy process. If one of your company’s customers or clients has filed for bankruptcy, a Miami creditors rights attorney at Edelboim Lieberman can provide you with additional insight, represent your company at the 341 meeting and help you determine appropriate next steps based on the information the debtor discloses at the meeting.
What is a 363 sale proceeding in a bankruptcy case?
In bankruptcy proceedings, debtors liquidate their assets through what is known as a 363 sale. In a 363 sale, the purchaser takes ownership free and clear of any mortgages, liens or other encumbrances. As a result, it is critical that secured creditors play an active role in the process. Our attorneys have significant experience representing creditors in 363 sales, and we can help your company protect its rights.
Do creditors need outside legal counsel for bankruptcy proceedings?
Creditors must either rely on their in-house attorneys or outside legal counsel to represent them in bankruptcy proceedings. In most cases, doing nothing is not a viable option, as failing to play an active role in a debtor’s bankruptcy case can have significant financial consequences.
Whether a client or customer is seeking a discharge or seeking to reorganize its payment obligations, your company will want a seat at the table. An experienced Miami creditors rights attorney will be able to take action to protect your company’s interests during the debtor’s bankruptcy and pursue adversarial proceedings if necessary.
Turn to a Miami Creditors’ Right Attorney at Edelboim Lieberman Today
If you are a creditor looking to protect your rights through representation in a South Florida Chapter 7, Chapter 11 or Chapter 13 bankruptcy, contact Edelboim Lieberman in Miami or Fort Lauderdale by calling 305-768-9909 for a no-cost, confidential consultation.
