Creditor Representation in Bankruptcy
Martelle and Associates PA represents creditor clients and has broad experience in matters arising under the United States Bankruptcy Code, the Uniform Commercial Code and state laws and common law procedures governing secured transactions and creditors’ rights in bankruptcy cases and other forms of insolvency matters.
When a customer or borrower has filed a bankruptcy case under Chapter 11 or Chapter 7 of the Bankruptcy Code, its creditors and lenders must act with speed and efficiency to preserve or enhance their rights with respect to collection and collateral.
Our experienced bankruptcy and creditor’s rights attorneys are poised to advise creditors, who learn that a customer has filed a bankruptcy case under Chapter 11 or Chapter 7, quickly analyze and determine how their rights may be affected by the filing.
Contact Martelle and Associates today for a confidential consultation. Call (208) 938-8500.
A creditor who fails to take prompt action to protect its rights may find that those rights have been barred or materially diminished.
Private lenders and private mortgage holders
Business loans and receivables
Our creditor clients include small and middle-market service companies, private note holders, manufacturers and suppliers, medical companies and other commercial enterprises.
Where necessary, we litigate through motions, adversary proceedings and trials to remove our clients’ collateral from the bankruptcy estate to permit foreclosure and sale.
Martelle and Associates represent clients in negotiating cash collateral terms in Chapter 11 cases and negotiating the treatment of their secured claims through confirmation of plans of reorganization or liquidation or where applicable, the conversion or dismissal of the case. During the duration of a Chapter 11 case, we monitor the case to observe whether the debtor or other creditors are initiating any actions that may be detrimental to our creditor clients’ claims or interests.
Our attorneys represent our creditor clients in maximizing any recoveries to which they are entitled in bankruptcy proceedings and pursue our clients’ rights against any collateral or third party obligors and to minimize the effect of any actions initiated against our clients by the Debtor or Bankruptcy Trustee in a bankruptcy proceeding.
A Chapter 11 or Chapter 7 case also presents an opportunity for a creditor to utilize the powers of the Bankruptcy Court to pursue the creditor’s claims against the Debtor (and its insiders) or supplement any on-going non-bankruptcy actions being pursued against the non-Debtor obligors or guarantors of a Debtor in a bankruptcy case.
Where beneficial to our client’s interests, we cooperate creatively with other constituents in the bankruptcy case. For example, we have negotiated terms with Chapter 7 trustees in bankruptcy cases to use their special bankruptcy powers to pursue claims against the debtor and its insiders, or to sell collateral with value-enhancing protections available to purchasers of assets from bankruptcy estates.
Our attorneys integrate strategically all of our activities in a bankruptcy case with any collection and foreclosure proceeding initiated in other courts against co-obligors on, or guarantors of, a bankruptcy debtor’s debt.
Martelle and Associates can advise creditors who wish to continue doing business with a customer who has filed a bankruptcy case to understand quickly what claims they have against the debtor and what terms they may impose on future dealings with the debtor.
Contact a Boise Idaho Bankruptcy Lawyer
Creditors of a customer who has filed a bankruptcy case who wish to continue to do business with the debtor need to quickly determine what procedural actions the creditor must take to avoid additional exposure and take advantage of certain rights granted to creditors who do business with a customer after it files a bankruptcy case under either Chapter 11 or Chapter 7.
Creditors who lease goods and real estate or who are parties to executory contracts are afforded special rights in bankruptcy cases, but the burden is on those types of creditors to assert and protect those rights.
Martelle may advise and represent lessors of goods or real property used by the debtor, and parties to executory contracts with the debtor, to assert and protect special rights they have in bankruptcy cases. Prompt evaluation of those special types of claims and the timely taking of appropriate action to protect those claims is essential to avoid having those special rights diminished or ignored.
Our attorneys also have experience representing both secured creditors and distressed companies in assignments for the benefit of creditors initiated under common law or under statutes in the states where we represent our clients. Under some circumstances, such assignments yield superior recoveries for creditors, as compared with bankruptcy and other workout actions and provide for a more efficient resolution of the collateral assets and debts of insolvent companies.