We have experience filing Chapter 11 and 12 bankruptcy cases for small farm and small business clients. We work hard to try to help farmers and businesses keep the doors open and operate. However, we also work on behalf of creditors because their rights are important and are affected by the process and any confirmed plan.
Most large banks, government bodies, and big financing companies already have counsel. But most small creditors don’t have the benefit of good lawyers on retainer. That’s why we’re here to help creditors – usually creditors holding unsecured claims, with no collateral. Their rights are often last in line after secured claims, tax claims, and other big players.
Chapter 11 and Chapter 12 creditors need a voice because many Chapter 11 cases don’t lead to the appointment of a committee for unsecured creditors and even those that do might be operated by a few select creditors instead of the whole class. The earlier we can appear in the case, the more information we can provide and the more support we can devote to making sure unsecured creditors get as much back as possible.
We have helped creditors raise objections to how things are working in a bankruptcy case. But once orders are entered, there are limited time frames to object or try to get a judge to reconsider a ruling. Unfortunately, by the time many creditors get notice and get counsel, a lot has already happened – lawyers are hired, emergency “first-day” motions are heard and approved.
Creditors in a Chapter 11 Bankruptcy: When should a creditor start calling lawyers?
A creditor should start calling an attorney when the Debtor stops communicating and stops payments, or when they receive notice of a bankruptcy filing. Most Chapter 11 and 12 cases don’t involve plans being filed immediately, but we can be retained and be prepared to review initial schedules, monthly operating reports, and be prepared to identify any issues with a potential plan.
The attorneys at WM Law can walk creditors through the process of filing claims, address any objections to claims or any other issues. This work helps us do better work on behalf of our debtor clients and make sure the bankruptcy process works fairly for everyone, especially small creditors.
If you are a small creditor in the Chapter 11 Bankruptcy or Chapter 12 Bankruptcy case, give us a call so we can give you our view of the case and make sure your rights are protected. Or visit us at www.kansascitybankruptcy.com. At WM Law, we are here to help.