Robert S. Bernstein Kirk B. Burkley Bernstein-Burkley, P.C. While lessors are rarely involved directly with inventory financing, there are times when it is important for them to understand the issues surrounding security interests in inventory. Once in a while, a lessee’s inventory may be looked to as additional collateral in certain transactions. A lessor may […]
Robert S. Bernstein, Esquire Kirk B. Burkley Bernstein-Burkley, P.C. This article appeared in LJN’s Equipment Leasing Newsletter , June 2003. An earlier version appeared in the July 2002 issue of Equipment Leasing Today. Obtaining the authority to make Critical Vendor payments in Chapter 11 Bankruptcy is becoming more “critical” than ever in the early stages […]
As soon as you learn that your customer has filed bankruptcy in the U.S., you should do certain things in the first few days. Taking swift action will significantly improve your chances of collection. Seek legal counsel immediately to help you examine the issues raised below: Reclamation is a process by which a credit-seller can […]
Changes in law that take effect this December will increase your chances of being sued for unmanaged attrition of records when litigation is likely. Protect yourself now! I. An Issue That’s Now Taking the Spotlight. As if you didn’t have enough to worry about, litigation-wise, a threat is moving to the forefront. It’s called “spoliation […]
By: Kirk B. Burkley This article appeared in the Pennsylvania Association of Credit Managers Newsletter, The Creditor There are a couple of important statutes that should rest on the credenza of all trade vendors dealing with financially unstable customers, and unsecured creditors. These statutes are the Perishable Agricultural Commodities Act (“PACA”) and Section 503(b)(9) of […]
“Bankruptcy.” To many creditors, this term is understood to mean a lost cause, a write-off and the end of the collection process. To other creditors, including those that appropriately use the filing of an involuntary bankruptcy petition, bankruptcy can mean the beginning of a successful strategy. Many of the benefits leasing creditors and others derived […]
As a commercial seller, distributor, manufacturer or purchaser of goods you are certainly aware of an area of the law known as the Uniform Commercial Code (U.C.C). In fact you have most likely read articles dealing with contract formation and the “Battle of the Forms” under the U.C.C., but what happens in this area of […]
Nicholas D. Krawec, Esq. Partner, Bernstein-Burkley, P.C. Commercial credit applications are contracts which will govern the credit account transactions between the credit grantor and its customer, and therefore are subject to the same rules of interpretation and enforceability as other contracts. The goal of contractual interpretation is to ascertain and to effectuate the intent of […]
Nicholas D. Krawec, Esquire Bernstein-Burkley, P.C. Many potential litigants are now looking to Alternative Dispute Resolution (ADR) to more expeditiously resolve their disputes, and to minimize the delays, and to some degree the expense, associated with filing suit, and joining a legion of pending cases on crowded court dockets. ADR typically refers to any method […]
Bernstein-Burkley, P.C. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 is over two years old now. By now, most people are familiar with its terms and have adjusted to the changes. Much of the new law, however, is still subject to different interpretations and litigation is heating up on a number of fronts. […]
There is perhaps nothing more frustrating than when one of your customers files bankruptcy and avoids paying money that they owe your company. However, anyone that has dealt with a “preference action” knows that merely writing off a debt as uncollectible is not the worst thing that can happen when a customer enters bankruptcy. A […]
Bernstein-Burkley, P.C. The recent Supreme Court decision clarifying the bankruptcy transfer tax exemption that allows debtors to avoid paying stamp taxes or similar transfer taxes on assets transferred as part of a confirmed Chapter 11 plan of reorganization. As outlined below, the Supreme Court struck down a ruling that had stated the transfer tax exemption […]