Remove Banks Remove Construction Remove Unsecured Creditor
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As Chapter 11 Bankruptcy Filings Surge, Here’s What Creditors Need to Know to Protect and Enforce Their Rights

Fraser

Such relief may include a request to pay some unsecured creditors (such as employees or “critical vendors”) ahead of others. Most unsecured creditors won’t have their pre-petition claims paid until after a debtor’s plan of reorganization is submitted to and approved by the bankruptcy court. Plan Confirmation Issues.

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When a Company Goes Into Administration or Liquidation Who Gets Paid First?

Hudson Weir

Once a firm enters administration, it must pay every creditor group entirely, save for ‘prescribed part’ secured creditors, before funds are distributed to the subsequent creditor. This company property can be anything from equipment and constructions to apparatus, vehicles, and intellectual property.

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How to Prevent Bad Debts in 2023. Tips from a Debt Collector

Debt Recoveries

The client might not have the cash on hand to pay right away (this is a concern in the construction sector where milestone payments are typical or in the rural / farming sector where income is dependant on seasonal crop harvesting). . Before they provide credit, have a look at what institutions with expertise, like banks do.

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Unsecured And Secured Loans: What If A Company Can’t Repay?

Hudson Weir

Secured loans or unsecured loans are crucial for many businesses, providing the investment they need to achieve their objectives and grow. According to the British Business Bank , there was a 12.8% increase in gross bank lending to SMEs between 2021 and 2022. But what’s the difference between secured loans and unsecured ones?

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The Rights of a Prepetition Lien Holder Against Postpetition Proceeds from a Sale of Real Property

ABI

In evaluating the Texas Business & Commerce Code and title 11 of the United States Code (the “Bankruptcy Code”), the United States Bankruptcy Court for the Southern District of Texas, in In Re Burts Construction, Inc., held that a secured creditor has the right to receive monetary payment for property sales based on its lien on “accounts.”