The impact of a troubled economy and major corporate bankruptcies has had a tremendous trickle-down effect on business in general.
We counsel our clients so they are able to anticipate customer credit problems and adopt credit management strategies that minimize issues. When unexpected or unavoidable creditors' rights problems arise, we enable our clients to act quickly to minimize losses, protect collateral and avoid much of the expense and aggravation associated with insolvency proceedings.
Preference Defense: Cost-Effectiveness
When a customer goes bankrupt, preference claims asserted by the bankruptcy trustee can undo even the most diligent collection efforts. We assist clients to develop credit management practices that reduce the risk of preference liability. When a trustee or debtor-in-possession asserts preference claims against our clients, our extensive experience in preference litigation enables us to dispose of or settle most claims on a favorable basis.
The "Burdensome" Lease
Unexpired leases and contracts present bankruptcy opportunities to both debtor and non-debtor parties. We assist our lessor, landlord and equipment finance clients to protect collateral and restart cash flows that may be interrupted by a customer's insolvency.
Reclamation Rights Can Take the Sting Out of a Customer's Bankruptcy
If you sell goods on credit and get caught by the unexpected bankruptcy filing of your customer, quickly asserting your reclamation rights may permit you to reduce your losses. Reclamation rights allow a creditor to recover goods (or the value of goods) that have very recently been delivered to the debtor, even though the bankruptcy filing has already occurred. We promptly show our clients what to do and how to follow up to ensure that a reclamation demand is effective.
Claim Filing: A Necessity for Getting Your Piece of the Bankruptcy Pie
The bankruptcy process has many deadlines for both debtor and non-debtor alike. No more important deadline exists than the claims bar date. We assist our clients in the careful preparation and filing of proofs of claim and, if necessary, defend any objections to those claims.