Part 1: What Causes it to “go legal?” When an account is placed with a collection agency, the client usually gives the agency authority to place it with a lawyer if the agency believes this move would assist in the collection. As a result this step often requires the agency to pay the lawyer a […]
A short series for Creditors Many collection or credit managers spend a great deal of time preventing collection problems, whether in the granting process or the in-house collection phase. More experienced personnel understand what happens when an account can’t be collected or adjusted in-house and has to be placed with an outside agency. Most managers […]
A mechanic’s lien can be filed against property and structures by contractors, subcontractors, material suppliers, and other construction professionals involved in new construction improvements to real property, or the alteration and/or repair of existing structures. When a mechanic’s lien claim is filed, it clouds the property owners’ title to the affected property, and normally would […]
Part 6: RECEIPT, STOPPAGE IN TRANSIT & CONCLUSION Contributed by: Robert S. Bernstein, Esquire Bernstein-Burkley, P.C. VII. THE DEFINITION OF RECEIPT The date of “receipt” is crucial in determining when the 10 day (or 45 day) reclamation demand period expires. Section 2-103 of the U.C.C. defines “receipt” of goods as “taking physical control of them.” […]
Part 5: CODE V. CODE Contributed by: Robert S. Bernstein, Esquire Bernstein-Burkley, P.C. VI. CODE V. CODE While the U.C.C. and Section 546(c) reclamation provisions are similar, they are not identical. There are several common risks for the unwary seller, arising from the differences between the U.C.C. and Section 546(c). Since Section 546(c) requires a […]
Part 4: CASH, LIEN OR CLAIM? Contributed by: Robert S. Bernstein, Esquire Bernstein-Burkley, P.C. V. RECLAMATION RIGHTS VS. SECURED CREDITORS AND/OR GOOD FAITH PURCHASERS A seller seeking reclamation must contend with two common hurdles to recovery. One is a prior secured creditor with a floating lien on the assets of the debtor. The second hurdle […]
Reclamation for Credit Managers, Part 3: HOW IT WORKS Contributed by: Robert S. Bernstein, Esquire Bernstein-Burkley, P.C. III. HOW IT WORKS The first thing a creditor should do when it learns of a bankruptcy (or other indication of insolvency) is look to see if it has any shipments which were received by the customer in […]
Part 2: RECLAMATION AND BANKRUPTCY Contributed by: Robert S. Bernstein, Esquire Bernstein-Burkley, P.C. I. RECLAMATION AND BANKRUPTCY Sometimes, the reclamation demand is occasioned by the customer filing a Voluntary Petition for Relief under Chapter 11 of the U.S. Bankruptcy Code. Please note that once a bankruptcy case is initiated, Section 546(c) provides the exclusive remedy […]
PART 4: Conclusion: What Creditors Can Do Contributed by: Robert S. Bernstein, Esquire Bernstein-Burkley, P.C. What happens when a business debtor closes up shop one day only to appear the next day under a slightly different name without going through bankruptcy? How does that happen and what do creditors do? We hope you have enjoyed […]
PART 3: Fraudulent Transfers Contributed by: Robert S. Bernstein, Esquire Bernstein-Burkley, P.C. What happens when a business debtor closes up shop one day only to appear the next day under a slightly different name without going through bankruptcy? How does that happen and what do creditors do? To answer that question, we need to review […]
PART 2: Debt Structure Contributed by: Robert S. Bernstein, Esquire Bernstein-Burkley, P.C. What happens when a business debtor closes up shop one day only to appear the next day under a slightly different name without going through bankruptcy? How does that happen and what do creditors do? To answer that question, we need to review […]
SAMPLE BYLAWS OF THE OFFICIAL UNSECURED CREDITORS’ COMMITTEE IN THE CHAPTER 11 CASE OF Case No. ________________ Pending in the UNITED STATES BANKRUPTCY COURT ___________________ DISTRICT OF ________________________ (the “Court”) Committee Counsel: Bernstein-Burkley, P.C. 707 Grant Street Suite 2200 Gulf Tower Pittsburgh, PA 15219 (412) 456-8100 TABLE OF CONTENTS ARTICLE I Name ARTICLE II Purpose […]