Houston Bankruptcy & Creditors' Rights Attorney
Lawyers Representing Business Creditors in Bankruptcy Courts Throughout Texas
As a business owner, you put your financial neck on the line every time you extend credit to a customer. If a client goes out of business or files bankruptcy, you risk losing every dollar that client owes you. U.S. bankruptcy laws are not so one-sided, however, that the creditor loses all rights.
Hendershot Cowart P.C. is a creditors' rights law firm with a long history of aggressively standing up for the rights of business creditors seeking to recover debts. If you are a creditor who faces significant losses due to your debtor's bankruptcy, we can help you pursue all available remedies to protect your interests in a Chapter 7 liquidation or Chapter 11 or Chapter 13 reorganization proceedings in United States Bankruptcy Courts.
Protecting Business Owner's and Creditors' Rights in Bankruptcy Cases
Our team of creditors' rights attorneys has helped corporate clients of all sizes and structures protect themselves against bankruptcy filings, breaches of contract, fraudulent transfers and financial fraud and misrepresentation by debtors. The sooner you talk to an experienced creditors' rights lawyer, the better your chances for asserting and defending your claim.
We assist creditors with all aspects of creditors' rights proceedings, for both Chapter 11 or Chapter 13 reorganizations and Chapter 7 bankruptcies. Our creditors' rights attorneys can help you:
- File a proof of claim to assert your right to get paid in a bankruptcy case
- Object to the full or partial discharge of debts in a bankruptcy
- File complaints to determine dischargeability of certain debts
- Defend you against preference actions or preferential transfers
- Assert your right to compensation as a critical supplier or vendor
- Recover fraudulent transfers
In most cases, filing a bankruptcy petition creates an automatic stay, which prohibits further collection activities or legal actions against the person or business that filed for bankruptcy. The issue shifts from trying to collect on the debt to determining whether the debt can be preserved through bankruptcy.
Hendershot Cowart P.C. can help. We have more than 100 years of combined experience successfully resolving transactional, litigation, and bankruptcy matters for businesses in Houston, Texas and throughout the U.S. Many of our bankruptcy cases are referred to us by other firms because we have the resources and experience to get results.
We can analyze your case, advise you of your most promising options and pursue the best course of action on your behalf.
File a Complaint to Determine Dischargeability of a Debt
Some types of debts cannot be discharged through bankruptcy. If you are a creditor, our law firm can file a complaint to determine dischargeability of a debt. The Bankruptcy Code lists numerous debts that cannot be discharged. If your complaint is successful, your entire debt will remain on the books even after bankruptcy.
We prepare complaints to determine dischargeability of debts, along with objections to discharge and legal action concerning preference actions and fraudulent transfers.
Section 727 & 523 Complaints: Objecting to the Discharge of a Debt
A business may have several options to fight the discharge of a debt during bankruptcy. The Bankruptcy Code provides that some debts are not dischargeable through bankruptcy, which means they will exist even after bankruptcy proceedings are complete if appropriate and timely steps are taken once the creditor receives notice of the bankruptcy.
Altogether, 18 types of debt are nondischargeable under the United States Code. Knowing case law and understanding the intricacies of the facts requires in-depth knowledge of the Bankruptcy Code. We understand the law and can protect your rights.
A creditor may object to the entire discharge of a debt under certain circumstances, covered by 11 United States Code (USC) Section 727. Specific debt, or an exception to discharge, requires a different strategy than filing a legal petition to determine dischargeability of a debt. If the debt is included in the debtor's bankruptcy filing, a creditor has legal options to file a complaint under 11 USC Section 523, that certain specific debts should not be dischargeable.
Defend a Preferential Transfer
We regularly defend businesses and individuals who have been subjected to preference actions (preferential transfers) under the Bankruptcy Code. In simple terms, a preference action is a claim by a creditor that a debtor repaid another creditor preferentially, imminently prior to filing a discharge of debt under the U.S. Bankruptcy Code.
The code allows the bankruptcy trustee to recover money from creditors who were repaid during a certain period before the bankruptcy filing in certain cases. Officers, directors, and company insiders generally have a one-year look-back period, while others have a six-month look-back.
You or your business may have several defenses to a preference action. For example, if the payment you received was for "new value received," you may be able to successfully defend yourself against a preference action.
We understand the Bankruptcy Code and how it may affect creditors. We understand what may be at stake in your case, and we will protect you aggressively.
File for or Defend a Fraudulent Transfer
Sometimes, a bankruptcy trustee ties a preference action to an allegation of a fraudulent transfer. It is unlawful for a bankruptcy debtor to transfer an asset with the sole purpose of avoiding the effects of bankruptcy against the asset. This is called a fraudulent transfer.
The Bankruptcy Code lists numerous situations in which a transfer may be fraudulent, including:
- Transfers made by a debtor with the intent to delay or defraud creditors
- Transfers made for less than full value
- Transfers to a general partner when the partnership was insolvent
- Transfers to a trust in which the debtor is a beneficiary
In cases involving fraudulent transfers, other creditors listed for dischargeable debts have the right to file preference actions to recover the payments. If successfully recovered, the debt will be open for objection to discharge by creditors.
Contact Hendershot Cowart P.C. to Protect Your Rights as a Creditor
We represent business creditors in bankruptcy courts throughout Houston and Texas. Schedule an initial consultation with our law firm to learn how we can help you.
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