Bankruptcy & Creditors' Rights
Bankruptcy & Creditors’ Rights
The Bankruptcy & Creditors’ Rights Group at Holmstrom & Kennedy regularly represents both creditors and debtors in a variety of matters before the state, federal and bankruptcy courts. We have also represented a number of clients in resolving financial disputes and their indebtedness without the assistance of the courts through voluntary workouts, restructuring and refinancing indebtedness or other similar procedures to address the problems of financially distressed businesses.
Creditors’ Rights in Bankruptcy, State and Federal Courts
Creditors are often required to enforce their rights within the courts. We have represented a wide variety of creditors in the enforcement of their claims before the bankruptcy, state and federal courts including both secured and unsecured creditors, landlords and lessors of real and personal property.
Our attorneys have assisted creditors in the exercise of a multitude of remedies including the foreclosure of their security interests in personal property, mortgages and liens against real estate, the termination of leases of real and personal property as well as the enforcement of other rights and obligations of parties pursuant to lease agreements and other contracts. We have also assisted numerous unsecured creditors in the enforcement of their claims against debtors before all courts.
Creditors can be placed subject to the jurisdiction of the bankruptcy court through the filing of a voluntary petition in bankruptcy by a debtor. Our attorneys have advised and represented secured and unsecured creditors, landlords, lessors and parties to contracts with a debtor in bankruptcy proceedings under Chapters 7, 11, 12 and 13 of the Bankruptcy Code. We have successfully assisted numerous creditors in terminating the automatic stay in bankruptcy to allow the foreclosure of their liens, the enforcement of rights and obligations under leases and contracts as well as the evaluation and negotiation of terms and the confirmation of plans of reorganization.
The commencement of a bankruptcy can also result in parties becoming involved in litigation before the bankruptcy court. We have extensive experience in representing debtors, creditors and other parties in a wide variety of litigation before the bankruptcy court including preferential and fraudulent transfer litigation, disputes involving the validity, priority, amount and enforcement of liens, mortgages and encumbrances against a debtor’s assets and litigation involving the enforcement of rights and obligations pursuant to contracts with a debtor, including lease agreements for both real and personal property.
In some instances it may be in the best interest of creditors to file an involuntary bankruptcy against a debtor in order to place the debtor which may be engaging in transactions to transfer or dispose of its assets or to prefer certain creditors or parties subject to the jurisdiction of the bankruptcy court in order to prevent or set aside such actions. Our attorneys have, in the past, successfully advised and assisted creditors in the filing of involuntary petitions in bankruptcy against debtors and the enforcement of their rights after the commencement of the involuntary bankruptcy.
Individual debtors may also engage in conduct prior the commencement of their bankruptcy that could prevent the discharge of their indebtedness to a creditor. Our attorneys have represented a number of creditors over the years in successfully opposing the discharge of the dishonest or fraudulent debtor.
Complex Chapter 11 Cases
Our attorneys have significant experience in representing creditors, debtors, committees, landlords and lessors in business reorganizations under Chapter 11 of the Bankruptcy Code. We have successfully represented debtors-in-possession in the formulation and confirmation of plans of reorganization which have involved the restructuring of their indebtedness to creditors in conjunction with the reorganization of the debtor’s business operations, the orderly liquidation of the debtor’s business assets as well as the sale of a debtor’s business as a going concern. We have also assisted both individuals and businesses in the purchase of assets of a business debtor within a Chapter 11 bankruptcy proceeding.
Often, the best course of action for financially distressed debtors and their creditors is to resolve, refinance or restructure their indebtedness without the assistance of the courts. Our attorneys have extensive experience in the restructuring of the business and indebtedness of financially distressed debtors as well as in representing creditors in the process which can take many forms such as compositions of creditors, assignments for the benefit of creditors, refinancing or other out of court restructurings.
Other Attorneys in this Practice Group
|KIM M. CASEY
"Leading Lawyer", Illinois
Martindale "AV" Rating
With H&K since 1981
|JOCELYN L. KOCH
With H&K since 2010