Tarbell & Brodich has a long history representing lenders. In that time our attorneys have developed high-level skills to assist individual and business lenders. As most lenders know, security is one of the keys to protection. Yet, just as most lenders insist on collateral to secure their loans, most lenders are also aware that borrowers can –and sometimes do– file for protection under the Bankruptcy Code. Under the Bankruptcy Code lender becomes a creditor and the borrower becomes a debtor.
The Bankruptcy Code treats creditors differently depending under which chapter the debtor filed for bankruptcy, most often: Chapter 7, Chapter 11 or Chapter 13. Critical for the lender-turned-creditor are what rights the lender has in the debtor’s bankruptcy case. The lender-creditor may want to sell the collateral. In order to do so the lender-creditor must seek relief from the automatic stay. Other times creditors may obtain their collateral via a non-consensual lien that the debtor may seek to strip away. In other cases creditors may rightly have concerns about the value of the collateral during the bankruptcy case and seek adequate protection. Another issue that arises in bankruptcy is that of adversary proceedings, where a debtor seeks relief against its creditor.
No matter the procedural status of your loan our attorneys have the experience and tenacity to represent lenders and lenders-turned-creditors in bankruptcy proceedings.