By Lance Portman.
What are your creditor rights in New York bankruptcy filings? Despite Federal initiatives to support businesses through the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL), we expect to see increases in the number of bankruptcies due to the economic downturn caused by the COVID-19 pandemic.
Should you receive a notice of bankruptcy from a customer, your timely action could make a difference in your potential claim recovery.
A. As we move through COVID-19 and its economic impact, it is likely that we will see more bankruptcies, especially since there is a new category of bankruptcy specifically for small businesses known as Subchapter V (a subchapter of Chapter 11 of the Bankruptcy Code).
If you have a business and extend credit to your customers, be prepared in the event that you receive a notice of bankruptcy. If this happens, take these steps:
I have represented creditors in bankruptcy cases for more than 30 years. Evaluating a case for a creditor is like putting together the pieces of a puzzle and then rolling the dice. After I review the details of the case and conduct an analysis, I can often predict a range of recovery with reasonable certainty. Frequently we are right, sometimes we’re wrong, but most of the time our estimates are pretty accurate.
I can tell you this: If you do nothing and leave the outcome to chance, you will receive very little, if anything. This is the time to engage an experienced attorney to assess your chances of recovering a payment that is worth your time and expense.
McCabe & Mack LLP only represents creditors in bankruptcy proceedings. Should you receive a bankruptcy notice, contact us right away. We will provide an assessment of your situation to help you sort through your options and next steps.
If you have any questions, please feel free to reach out to me personally at 845-486-6872 or by email.
Lance Portman, a partner with McCabe & Mack LLP, is a graduate of Syracuse University College of Law and Hamilton College. A founding member and former president of the Hudson Valley Bankruptcy Bar Association, Lance was named an Upstate New York Super Lawyer in 2008. He is a member of the New York Bar, California Bar (Inactive), and Dutchess County Bar Association. Lance is admitted to the Federal Courts serving our region as well as the Supreme Court of the United States of America.