Creditors’ Rights

Creditors’ rights are those procedures, laws and rules created to protect the right of those who are owed money to collect that money, repossess property or otherwise remedy their loss. A creditor’s rights vary depending on the goods or services at issue, the substance of the transaction and the written contract, if any.

Creditors’ rights’ attorneys seek recovery for their clients in both commercial transactions, those between businesses, and consumer transactions, those between a business and an individual. Debt recovery litigation includes claims against both money and property.

A skilled attorney will understand all avenues that must be reviewed in determining the types of relief that a creditor may seek and the best forum for seeking those remedies. Creditors’ rights attorneys practice in the following areas:

∙           Collection of commercial debts

∙           Collection of consumer debts

∙           Accounts receivable or A/R recovery

∙           Collection of business accounts/open accounts/credit accounts

∙           Representation of creditors in bankruptcy cases

∙           Claim and Delivery/Replevin/collateral recovery

∙           Judgment enforcement

In addition to the rights a creditor may have against a debtor, creditors also have rights against other creditors. The legal concept of “priority” determines which creditor has the superior claim over other creditors. Creditors often seek to claim rights to the same property or accounts of the debtor. Creditors’ rights defines the scope, priority and amount of each creditor’s claims.

Kurtz Law represents clients in all stages of the creditor-debtor relationship, including contract negotiation and drafting, negotiated debt settlement, debt collection litigation, judgment, appeal and judgment collection.

A significant area of interest for creditors is secured transactions, or those transactions in which the creditor holds collateral or a secured interest in the debtor’s property. Secured transactions arise for creditors in security agreements, UCC filings, Deeds of Trust and various types of liens.

In order for the creditor to get the most protection, creditors should consult with Kurtz Law concerning the complex areas of secured transactions and priority. Creditors must “perfect” their interest in the collateral in order to retain a priority position as to the debtor’s collateral.

If the steps are not completed exactly as the law defines, the creditor may lose its priority to other creditors or lose its rights to the debtor’s collateral entirely. In the event that the debtor attempts to dispose of property to avoid a creditor, a capable attorney can assist the creditor in setting aside the fraudulent conveyance and protecting the asset for the creditor’s benefit.

Kurtz Law also represents creditors on collection matters within the bankruptcy courts of North Carolina. Creditors, particularly those holding liens or secured interests in the debtor’s property, have protections within the bankruptcy court. Many of those rights should be asserted early in the bankruptcy proceedings.

Consult with Kurtz Law upon the filing of a bankruptcy petition to protect the creditor’s rights.








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