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Legal Articles
Say Goodbye To The State Preference Action?
By Scott Blakeley
Preference actions are the bane of the vendor. It
seems that with any customer filing bankruptcy (no matter the bankruptcy
chapter), vendors are targeted for payments received (or even goods that were
returned by the customer) during the 90 days prior to the bankruptcy filing.
Vendors are often surprised to learn that preference actions are not limited
exclusively to the federal bankruptcy system...
Proof of Claim Proof of claim - is not just a term connected with a Creditor’s responsibility when filing a claim against a bankrupt debtor.
Whether your customer is bankrupt or just avoiding their just obligation in order to buy time, you (the Creditor) must realize that you have a true obligation. I can assure you, as a Collection Agency’s Principle and having submitted literally thousands of cases to courts across the country, that the requirement of “proving up” the Creditor’s claim is as much a necessity to collection success as having a claim to begin with. This is a fact I have grown to appreciate all too well.
Previous Articles BelowLegal Tools for Creditors
The first remedy we will examine is a lien. There are two broad categories of liens: liens acquired by contract or those that arise by operation of law.
click here to read full article >>> Choice of Venue - What's Best in a Collection Case?
Oftentimes a creditor is faced with the question of where to file suit when it is apparent the debtor will not pay. There are several serious considerations that need to be taken into account before undertaking the decision of where to sue.
click here to read full article >>> Introduction to Piercing the Corporate Veil.
When a debtor corporation or other limited liability company stops paying its bills, it is common for the creditor to ask, “Can I collect from the owners of the company?” If the debt was incurred by a bona fide corporation acting in the ordinary course of business, the answer is usually “no.” But if there is abuse of the corporate privilege or evidence of fraudulent conduct, individuals may be personally liable for corporate debts.
