How Much Should A Creditor Be Involved With Payment Plan Development?
In an ideal world when a company is established, it will run and function smoothly with no problems to its success. As a result, it will be profitable and able to pay back its debt. In some situations, this does happen but in others not so much. And when a company is overburdened with financial debt that cannot be paid off, bankruptcy may be the approach chosen to handle the situation. Bankruptcy is a legal remedy for businesses that have too many financial obligations to come to better terms with them. This may happen by way of debt elimination, a reduction in debt, or a restructuring of debt. And when a decision has been made as to how to handle debt, both the business with the debt and its creditors must abide by the court’s decision.
Lending money and then getting less than what was expected in return is not ideal. But this is a situation that happens quite commonly. Even though bankruptcy helps debtors manage their financial woes better, it also provides creditors with the ability to be involved in the process and work to secure the most favorable outcome. Creditors that need assistance with handling bankruptcy court and getting the best results possible can connect with the New York City creditor representation lawyer Harry D. Lewis.
Involvement of the Creditors in Payment Plan Development
Having experienced representation when a debtor has filed for bankruptcy can be greatly beneficial to the outcome of such a case for creditors. Creditors may not want to hear the term bankruptcy with respect to any businesses they lent money to but when this happens, these entities also have rights that should be protected.
Ultimately, creditors are allowed to play a part in the bankruptcy process. Getting actively involved only improves the chances that the outcome for a creditor will be one that is in the creditor’s best interests for the specific situation.
One of the many actions that a creditor can take is to be a presence that works with the debtor to develop a reasonable payment plan. This typically happens during both Chapter 11 and 13 bankruptcies. Without taking a role in the payment plan development, the outcome may be detrimental to the creditor. And, since creditors must follow all terms that are approved in the payment plan, it is best that creditors make their voices heard and have their side clearly known with respect to the terms of the plan.
The New York City bankruptcy attorney Harry D. Lewis is a trusted legal advocate that creditors can count on to represent their best interests in these matters. For more than four decades, attorney Harry D. Lewis has been helping creditors negatively impacted by bankruptcy proceedings secure the most workable and favorable results.
Speak to a New York Creditor Representation Attorney Today
Creditors in New York that need advice or assistance with a bankruptcy proceeding and the development of a payment plan can call on the New York creditor representation attorney at The Law Office of Harry D. Lewis today to schedule a free consultation at 212-859-5067.