Protecting Unsecured Creditors in Bankruptcy
Few holders of unsecured claims in bankruptcy can expect to realize more than a few cents on the dollar. Debtors under any chapter of the Bankruptcy Code seldom have unencumbered assets sufficient to meet the claims remaining after secured creditors, priority claims and administrative expenses have been paid. The claims that go unpaid are generally discharged and remain forever uncollectible against the debtor.
Nevertheless, if you are holding a substantial unsecured claim or judgment lien against a debtor in bankruptcy, it makes sense to review your alternatives with an experienced bankruptcy lawyer. Your claim might qualify for treatment under one or more of the recognized exceptions to discharge, especially if fraud played a role in the transaction creating the debt. To learn about your legal options in a Massachusetts bankruptcy, contact Gannett & Associates in Boston for a free consultation.
Call (617) 367-0606 to discuss your claim with a knowledgeable attorney
One effective way to qualify for an exception to discharge is to show that your claim reflects fraud or dishonest conduct on the part of the debtor. If we have the opportunity to represent you from the earliest stages of the collection process, we make sure that your original complaint specifies the facts indicating fraud. If the debtor files for bankruptcy, your objection to the discharge of your claim will be that much easier to prove. This tactic can also benefit secured creditors facing a deficiency after liquidation of the collateral.
We also know how to handle the situation where the debt itself was honestly incurred, but the debtor responds to creditor pressure by concealing property, transferring assets to insiders or selling the business to a third party. Bankruptcy provides creditors with options for setting aside such transfers, and recovering fraudulent transfers or preferential payments into the bankruptcy estate can help as much or more than excepting a claim from discharge.
For additional information about our law firm’s ability to protect the interests of unsecured creditors in Chapter 7, Chapter 11, or Chapter 13, contact Gannett & Associates in Boston.