Bankruptcy comes in many shapes and many forms, but there is typically at least one “enemy” that client has to face in a very direct manner. The enemy is the creditor. There is often an army of lending companies that have helped provide the company the finances it needed to flourish. For a complex set of reasons, the company is no longer able to pay back the funds allocated- and now the confrontation has begun.
Clients have faced some tough obstacles in their time, but the might and the resources behind a high-end creditor could be the toughest challenge yet. It is up to the attorneys to create an insurmountable defense and to circle around resourceful creditors.
Flooding the Files
Clients who have to mount an especially powerful defense need to have an attorney who has navigated the defensive waters for decades. A good tactic to keep the prosecution at bay is to flood their capabilities with additional paperwork and red tape. Attorneys who have been at it long enough know the game, and they know how to turn it back around. This is a fantastic strategy in a chapter 7 bankruptcy.
Large Companies Can Move Slowly
In many instances, companies are a little too large for their own good. They often do not move as fast as a bankruptcy client who has only one or two short goals in mind. A company has to receive authorization and approval, and their very size can be a detriment. A bankruptcy attorney can use this aspect to their advantage by making the job of the creditor more cumbersome. The strategy demands a flood of paperwork and claims details that slow it down.
The above is not always the best strategy, especially considering how fast the client wants the liquidation to end and the fresh start to begin. But, it is worth noting that there are tactics to use against lending companies.
Clients will want an investigative team who can help build the resource pool and to fight the creditors on their turf. In a chapter 7 bankruptcy, there are many opposing creditors who want as much of the money they lent out as possible. They will go far to complete their goal. It is up to the client to respond with equal resourcefulness and even proactive and studious mindfulness. Keep the main goal in mind, which is liquidating the company without losing absolutely everything to forceful and powerful creditors.