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Secured Claims in Bankruptcy

Enforcing the Claims of Secured Creditors in Bankruptcy

At the Boston law firm of Gannett & Associates, we represent secured creditors, inventory lenders and the holders of mortgage or judgment liens in bankruptcy cases filed in Massachusetts. Our goal is to help you realize the full value of the collateral that secures your claim. In some cases, we can also help you build the case for excepting any unsecured portion of your claim from discharge.

Call (617) 367-0606 for a free consultation with a Boston bankruptcy lawyer

To learn about the best ways to protect your interests as a secured creditor, contact Gannett & Associates. Our experience with bankruptcy law and procedure provides essential backup for our collections work on behalf of creditors of all kinds — after all, bankruptcy is an inherent risk of any credit transaction or debt collection effort.

The possibility of bankruptcy is also the principal reason why creditors take a security interest in the debtor’s assets whenever possible. In bankruptcy, a secured creditor will normally be able to enforce its claim against the collateral while the unsecured creditors wait to see what their pro rata share of the debtor’s unencumbered assets might be — in many cases, nothing at all.

Despite the secured creditor’s favored position in a bankruptcy case, problems can arise. These can include:

  • Challenges by a trustee or a competing secured creditor to the perfection or priority of your security interest, mortgage or lien
  • Attempts by the debtor to use the proceeds of collateral to support ongoing business operations when the secured creditor would prefer to liquidate its collateral position
  • Collateral valuation questions, especially in declining or volatile markets
  • Attempts by the debtor to subordinate the creditor’s priority in the collateral for the sake of new financing or operating capital

Our experience with the documentation, presentation and pursuit of secured claims in bankruptcy can help you choose and execute the right strategy for protecting your position. In some cases, an early motion for relief from the automatic stay will be the right move, so that you can exercise your rights under your security agreement or liquidate the inventory. If the debtor has sufficient equity in the collateral, we can stipulate to terms that will continue the debtor’s possession while affording adequate protection for your claim, including sound cash collateral conditions.

To learn more about the scope of our services on behalf of secured creditors in Massachusetts bankruptcy cases, contact an attorney at Gannett & Associates in Boston.

Office Location

Gannett & Associates
165 Friend Street
Suite 200
Boston, MA 02114
(617) 367-0606