Navigating The Chapter 11 Bankruptcy Process
A Chapter 11 bankruptcy filing enables corporations and small businesses to reduce their debt burdens. Of course, this creates problems for creditors that are owed outstanding sums. Indeed, it is often the case the creditors themselves face financial complications after a debtor files for bankruptcy and fails to make good on a loan.
But creditors have rights, and we can help assert them. The attorneys at Coates & Davenport, P.C., provide qualified assistance to parties seeking to recover compensation from businesses entering Chapter 11 proceedings. For more than 30 years, our firm has supported creditors in Richmond and throughout Virginia in such matters. We understand how crucial it is to obtain what one is owed — and we understand how crucial it is to act quickly.
The Ins And Outs Of Creditors’ Committees
In many cases, a Chapter 11 bankruptcy will involve hundreds — if not thousands — of creditors. Each wants the maximum recovery, even as resources to pay creditors are limited. As might be expected, this can lead to a great deal of infighting among the various parties.
To resolve matters, a creditors’ committee is formed. This is a body comprised primarily of the largest creditors. The committee acts, essentially, as a single voice and endeavors to maximize each party’s return. But distribution of the debtors’ assets will not, strictly speaking, be fair. Few creditors will receive a full recovery, but some will obtain a higher dollar-for-dollar payout than others. Smaller creditors are especially at risk of seeing their returns dwindle.
This is why retaining experienced legal counsel is necessary. At Coates & Davenport, P.C., we fight hard on behalf of our clients. At every step, we work hard to assert their interests and protect their rights. While a full recovery is rare, our firm knows how to leverage the legal system and get the most for the individuals and firms we represent.
We Will Pursue Maximum Compensation From Debtors
To learn more or to speak with a lawyer, reach out to us today. You can call our firm at 804-729-5537 or schedule a consultation online. We’re always prepared to answer your questions and address your concerns.