Life After Bankruptcy: Don't Leave Money on the Table!
Shareholder Milos Gvozdenovic and attorney Erin McCabe recently attended the Byrider 2022 Annual Convention in Miami, Florida. Thanks to all the attendees who were able to stop by the Weltman booth!
Many of the Byrider franchisees who stopped by our booth were interested in the bankruptcy process, including whether or not to sell off their bankrupt accounts or service them. The Weltman Bankruptcy Group specializes in the intricacies involved in bankruptcy recovery. We examine every aspect of each bankrupt account and serve as trusted advisors who protect your interests every step of the way. We invite any franchisee with a bankrupt account to contact our offices for a free bankruptcy analysis. Let’s work together to maximize your recovery! You may leave some money on the table when you choose to sell your bankrupt accounts or not prosecute them.
Following this informative conference, we would like to share the top four takeaways – and things to keep in mind:
- Don’t miss claim deadlines. If your customer filed for bankruptcy and they are offering to pay your claim through the bankruptcy plan (or pay you directly), you won’t get paid without a claim.
- Don’t feel obligated to take a reduced amount on your loan. You may be able to object to the proposed payment amount. A customer cannot cram down the balance of the loan if the loan is less than 910 days old or if the retail value of the collateral is higher than what the plan is offering.
- If your customer files a chapter 7 bankruptcy, don’t forget to review their statement of intention. They may be willing to reaffirm on their auto loan.
- Don’t forget the automatic stay that goes into effect upon the filing of any bankruptcy! Once a customer files for bankruptcy, you will need to immediately stop all collection efforts. But that stay is not permanent as it can be terminated under certain circumstances.
If you have any questions and/or want to connect, please contact Milos or Erin at any time. To learn more about Weltman’s bankruptcy recovery solutions, visit our website here.
This blog is not a solicitation for business and it is not intended to constitute legal advice on specific matters, create an attorney-client relationship or be legally binding in any way.
