Our firm represents lending institutions in a variety of matters. We have skilled New Jersey commercial collection attorneys who can assist you with your business and collections needs. Unfortunately, the laws protecting debtors can often frustrate the collections process. We can offer counsel for many issues including the fraudulent transfer of assets by a debtor.
The Bankruptcy Process and Its Impact on Collections
Lenders face an uphill challenge when a debtor files for bankruptcy protection. In many cases, the filing will put an automatic stay on debt collections. When a debtor owes large sums of money to the lender, this can create a serious financial burden. Our firm can work with you to review the bankruptcy files and protect your claim in court.
When Fraudulent Transfer Is Suspected
Upon filing, the debtor’s case is transferred to a bankruptcy trustee. We can review the debtor’s filings to ensure that the loan in question is disclosed. While collections during bankruptcy are problematic and mostly prohibited, it’s important to carefully inspect the debtor’s behavior leading up to and during the bankruptcy proceeding. Debtors are not permitted to engage in a fraudulent transfer of assets in an attempt to shield them from collection by a creditor for a legitimate debt. A fraudulent transfer may take place with both intentional and unintentional motives. If intent can be proven, the trustee has the power to marshal the assets transferred and bring them back into the bankruptcy estate. The same power exists for unintentional transfers. These can occur if a debtor conveys an asset for a grossly disproportionate value. If the transfer is suspect, the trustee can also recover that asset. The recovered assets may then be used to satisfy some of the debt owed.
Your attorneys can work to protect your interests in the bankruptcy proceeding.
Put skilled New Jersey commercial collection attorneys in your corner for your business and collections needs. To make an appointment for your initial consultation and to discuss your legal options, call the offices of Snellings Law, LLC, at 973.265.6100.