Practical Strategies And Legal Experience: Meet Free Parking And No Elevators

Creditor Claims Versus Customer Bankruptcy

In the bustling commercial hub of Seattle, business transactions are the lifeblood of the local economy. However, not all deals proceed as planned, and disputes over money owed can lead to litigation. At DC Law Group, we stand with creditors in Seattle and throughout Washington State, guiding them through the complexities of when a customer declares bankruptcy before, during mid-litigation or after a ruling.

They Filed Bankruptcy, Now What?

If you are a business engaged in a lawsuit and the party owing money files for bankruptcy—be it Chapter 7, 11, or 13—automatic stay is the immediate effect. This legal halt stops most collection activities and litigation in their tracks. While this may seem like a setback, our firm, with its deep understanding of bankruptcy laws, can help creditors navigate this pause effectively.

In a Chapter 7 filing, where the debtor’s assets are liquidated, we can assist in filing a proof of claim to ensure you are included in the distribution of any available funds. Chapters 11 and 13 involve reorganization plans, where we can advocate for a plan that respects our clients’ rights and seeks to maximize their potential recovery.

The key is to act swiftly and strategically. By engaging a litigator specializing in bankruptcy, you can protect your rights as a creditor and find a path to recover available funds despite the complexities introduced by the bankruptcy process.

Post-Litigation Bankruptcy

Court victory can feel hollow when the defeated party seeks protection in bankruptcy. Particularly in fraud or fraudulent conveyance cases, creditors might worry that their hard-won judgments will go unpaid. However, this doesn’t have to be the case.

Bankruptcy does not discharge all debts, especially those tied to fraudulent behavior. If the court awarded damages due to fraud, these debts may survive the bankruptcy, allowing for recovery. Our role as a firm also dedicated to litigation is to ensure that these exceptions are recognized and to preserve our client’s rights to the awarded damages.

We can file a nondischargeability action in the bankruptcy court, arguing that the court should not wipe away the debt due to the nature of the judgment. With our knowledge in such matters and our commitment to our clients, we provide the support necessary to navigate the post-litigation bankruptcy landscape and work toward securing the funds rightfully owed.

Bankruptcy Has A Silver Lining For Creditors

Bankruptcy might strike creditors as a last resort for failing businesses, yet it can also bring unexpected benefits to those owed money. By understanding the advantages, creditors can often put themselves in a better position than they initially expected.

  • Efficiency: The bankruptcy process centralizes all claims, providing a single forum for resolving disputes and eliminating the need for multiple lawsuits. It can save time and legal expenses for creditors already facing potential losses.
  • Security: Bankruptcy courts aim to distribute assets fairly among creditors. Our firm helps clients assert their claims, striving for a fair position in the distribution hierarchy.
  • Protection of rights: Preserving the right to collect a meaningful recovery is crucial. Bankruptcy can provide a structured and legally enforced payment plan, which, if navigated correctly with our assistance, can result in a more substantial recovery than piecemeal collection efforts outside of bankruptcy.

Let’s Get To Work

Bankruptcy introduces challenges for creditors but also provides structured avenues for recovery. Our firm’s focus on representing creditors’ rights allows us to skillfully guide our clients through this process, leveraging every opportunity to secure the financial outcomes they deserve. Contact us by phone at 206-677-9630 and leave a message if it’s outside of business hours. You can also use our contact page. We offer free initial consultations.