Legal Question in Bankruptcy in Maryland

Re: How much will a client owe me if they declare Chpt 11?

If the case is dismissed, the Debtor would owe you the $100K, plus any interest to which you are contractually or legally entitled, less any payments made - it would be as if the case had not been filed. If the case is not dismissed and a plan is confirmed, the debtor would owe you whatever the plan provides for, and the rest would be discharged.

Assuming you are not a professional person who would be required to be appointed by the court if you were to act for the Debtor once the case was filed, and you do $50K worth of work for the debtor during the case, you would be entitled to payment as the work is performed, and would be entitled to priority payment of that portion of the debt. If court appointment is required, you would most likely not be eligible for appointment if you are a creditor of the debtor. If you do work that requires appointment without being apointed, you are not entitled to payment. If you are appointed, you are entitled to the same priority treatment just described.

With $100K owed to you by a Ch. 11 debtor, it is important that you retain experienced bankruptcy counsel to represent you.