What creditors need to know about bankruptcy!

"best attorney for creditors"Many creditors mistakenly believe that when one of their debtors files a bankruptcy case, all hope of being paid is lost.  This is not necessarily true!  Depending on the type of claim you have against the debtor, it is possible for you to recover a significant amount of the debt owed to you.  The attorneys at  Windtberg & Zdancewicz, PLC have extensive experience in representing secured and unsecured creditors in pursuing their claims against bankrupt debtors.

The automatic stay immediately goes into effect when a debtor files a bankruptcy case, regardless of what chapter the case is filed under.  The stay prohibits further collection efforts by creditors while the bankruptcy case is pending.  Thus, as soon as you receive notice that the debtor has filed a case, it is imperative that you halt all debt collection efforts (including pending lawsuits).

It is important, however, for creditors to understand that the automatic stay has limitations.  For example, a creditor who meets certain criteria can file a motion for relief from the automatic stay.  The motion typically sets forth arguments for why the stay should not apply to the creditor.  Such arguments include debtor’s failure to remain current on payments, debtor’s failure to maintain adequate insurance on assets pledged as collateral, or other similar circumstances which warrant removing the stay from the creditor.  A creditor may also be able to pursue preferential or fraudulent transfer litigation within the bankruptcy case.

The attorneys at Windtberg & Zdancewicz, PLC, provide clients with experienced legal representation.  We handle many types of business disputes on behalf of both creditors and debtors. Our attorneys handle cases from pre-litigation negotiations through litigation, obtaining and enforcing judgments to collect what our clients are owed.  We are experienced in creditor’s rights including garnishments, charging orders, attachment, property execution, trustee’s sales, foreclosures, judgments, judgment collection, domestication of foreign judgments, and creditor’s issues in bankruptcy cases.  If you need assistance, or are interested in learning more, please contact us at (480) 584-5660.







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