Category Archives: Debt Collection
Obtaining Debtor-in-Possession (DIP) Financing During Chapter 11
For companies bordering on financial collapse, Chapter 11 bankruptcy can offer relief through protection from creditors and a debt restructuring plan that provides a way to return to solvency. But the reorganization process requires access to capital. This is why debtor-in-possession (DIP) financing is critical. It allows the debtor, who remains in possession of the […]
Facing Adversary Proceedings That Challenge Discharge of Debts
The goal of a bankruptcy is to obtain a fresh financial start by having some or all of your debts discharged — namely, wiped out. However, there may be reasons that a creditor or the bankruptcy trustee objects to the discharge of certain debts or to all of them. This sometimes results in an adversary […]
The Perils of Not Responding to a Collection Lawsuit
When you are served with a summons and complaint in a collection matter, ignoring these papers will likely have costly consequences. You might not only lose the opportunity to defend yourself, but also put yourself at risk of collection measures that can take your assets and income from you, or even force you into bankruptcy. […]
Setting Aside Default Judgments in California
If a creditor goes to the trouble to sue you, they mean business. If for any reason you do not respond to a summons and complaint within the time required by California law — usually 30 days — the creditor can seek and obtain a default judgment. The court typically awards the creditor the amount […]
What Can Your Creditors Take if You File for Bankruptcy?
For those in financial distress, bankruptcy provides a means of eliminating overwhelming debt and starting fresh. One question people considering bankruptcy protection often ask is: will I lose all my possessions? The short answer is no. There are limits to what creditors can take, since certain property may be declared exempt from their claims. There […]
Your Rights Under the Fair Debt Collection Practices Act
It’s fairly common for consumers who have fallen behind on their payments for various debts to be confronted by collection agencies. Although debt collectors may be intimidating at times, you may need to deal with them, at least for a short period of time. However, this does not mean you must go against your creditors […]
Tips for Dealing with Aggressive Debt Collectors
The Rosenthal Act, a law specific to California, prohibits collections agencies from engaging in abusive activities. But if debt collectors are not following the law and become too insistent, you should know that you have a legal right to make them stop. Debt collectors from collection agencies are prohibited from the following: Calling repeatedly Calling […]