Bankruptcy - Creditors' Rights

Bankruptcy - Creditors' Rights

Businesses throughout Georgia's 159 counties look to the lawyers of Andersen, Tate & Carr, P.C. for guidance and assistance when a debtor files for bankruptcy. When stakes are high, a creditor is urged to seek competent legal counsel. A creditor does not have to simply absorb loss without first seeking the opportunity to mitigate and minimize that loss.

There are many avenues by which Georgia creditors can recover partial or total amounts owed by clients who are filing Chapter 7, Chapter 11, Chapter 12 or Chapter 13 bankruptcy. The higher the stakes, the more worthwhile it is to examine all possible defenses.

Contact Andersen, Tate & Carr, P.C. to schedule a consultation regarding a pending or ongoing bankruptcy filed by a client-debtor. Assert your creditor’s rights in the face of the risk of total loss through a customer’s bankruptcy. Options may include the following:

  • A creditor may assert an "administrative expense" priority claim for goods received by the bankrupt customer within 20 days of a bankruptcy filing.
  • A creditor may assert a "reclamation claim" for goods delivered to an insolvent customer within the 45 days before a bankruptcy filing;
  • A creditor may assert rights as a "lien holder" with regard to special classifications of supplies.
  • A creditor may assert a right to compensation as an ‘essential supplier" or "critical vendor."
  • A creditor may pursue priority litigation versus other lien holders including secured creditors, taxing authorities and landlords.
  • A judge may grant relief from an automatic stay if it can be shown that a debtor is committing fraud or acting in bad faith.

Call or e-mail the law offices of Andersen, Tate & Carr, P.C., to schedule a consultation.

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