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Bankruptcy, Insolvency and Creditors’ Rights

Alabama Bankruptcy Attorney Assisting Creditors

Advocating for creditors’ rights

While bankruptcy laws are quite compassionate towards individuals who have fallen on hard times, they can be harsh on creditors who are forced to absorb a loss that helps finance the debtor’s fresh start. However, if you’ve received a notice of bankruptcy by someone who owes you money, don’t assume that you have no rights. At O'Hara Watkins, we help creditors assert their rights toward debtors in bankruptcy. We are available to assist you in cases related to:

  • Chapter 7, 11 and 13 bankruptcy
  • Advising client on use of involuntary bankruptcy filings for creditors
  • Litigants claim by creditors
  • Defending alter ego, fraudulent transfer and preference claim
  • Advising on executory contracts and stay relief

We know the bankruptcy code inside and out and can advise you on the steps to take to improve your chances of being repaid.

What an “automatic stay” means to a creditor

An automatic stay is an injunction by the bankruptcy court that immediately prohibits creditors from seeking repayment of debts from the debtor. It doesn’t mean you’re out of luck, but it does mean any efforts to recover what you are owed must be directed towards the court. We assist creditors in reviewing a debtor’s bankruptcy petition to see precisely where opportunities exist for the creditor to advance his claim. We are aggressive in meeting the court deadlines, which come quickly and require detailed responses. We take the stress off our clients’ shoulders.

Secured versus unsecured debt

A loan that is secured by collateral gives the creditor a lien against a debtor’s asset. This is a huge advantage in bankruptcy court, where secured creditors go to the head of the line. Often the issue is cut and dried, but where there is ambiguity about whether a debt is secured, a skilled attorney can make the difference to a creditor’s chances of recovery.

The honesty requirement

The U.S. Supreme Court has stated that the Bankruptcy Code “gives to the honest but unfortunate debtor…a new opportunity in life….” If the debtor took on the debt in bad faith or through some kind of dishonest manipulation, he can’t discharge that debt. Likewise, if you believe there is misrepresentation or fraud in the debtor’s bankruptcy petition, such as attempting to hide assets, you must bring those objections to the court. An experienced bankruptcy attorney can present a clear and convincing argument to help your cause.

Debtor’s Rights In Bankruptcy

Successful bankruptcy filing demands experienced counsel who understands how to maximize the laws to obtain maximum debt reorganization. At O’Hara Watkins, we represent small to mid size business owners who suffer cash flow problems or personal financial loss related to their business. We represent these business owners with the full strength of the bankruptcy code to give the business the opportunity to reorganize it’s debts and exit bankruptcy as a going concern.
We provide counsel for business debtors in the following areas:

  • in chapter 7, 11 and 13 proceedings
  • in loan workouts, assumption/rejection of leases
  • cram down of secured debt

Bankruptcy proceedings move quickly — contact an attorney today

Especially today, when bankruptcy filings are so numerous, the court is eager to decide cases fast. If you delay asserting your rights, you can easily lose them. Call O'Hara Watkins today at 251-414-7772 or contact us online to schedule a consultation with a seasoned bankruptcy attorney dedicated to helping creditors.

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Our Office
  • Daphne Office
    1307 Main Street
    Daphne, Alabama 36526
    Phone: 251-414-7772
    Fax: 251-414-7773