Legal Question in Bankruptcy in Maryland

Best course of action for a creditor

I hold a note for $250K from a privately held corporation for sale of my stocks, payable in monthly installments over a few years. They paid installments for a number of months and missed payments for few months for last 2 years. Now, it appears that they are considering chapter 11 protection, though have not filed yet. What are the actions that I need to take in order to strengthen my position at the court? The note is personally guranteed by the majority owner.


Asked on 10/22/01, 11:26 am

2 Answers from Attorneys
Daniel Press Chung & Press, P.C.

Re: Best course of action for a creditor

There's probably not much you can do, but you may want to consider filing suit if the note is not secured, so that you can try to get a judgment lien, and possibly try to get a pre-judgment attachment. But any lien or attachment will have to be in place at least 90 days for it to survive avoidance in bankruptcy. See a lawyer about this situation ASAP.

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Answered on 11/22/01, 11:25 am
Joseph Trevino Law Offices of Joseph A. Trevino

Re: Best course of action for a creditor

You are are not without recourse, but you need to act quickly. With economy on a downturn and some businesses struggling to make it, it would not be at all surprising if the company does go in for Bankruptcy protection. You are a significant creditor. If the company is in Maryland, contact a qualified attorney there right away in order to protect your rights as a creditor. If you'd like you can Call my office, in Md., 1800-924-6217.

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Answered on 11/22/01, 7:05 pm


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