2013
NACM Oregon Business Credit Journal
September | October
A bi-monthly newsletter published by NACM Oregon
After Becoming a Bankruptcy Creditor, Stay Engaged In the Process
In This Issue
Ava Schoen, Attorney, Tonkon Torp LLP A Notice of Chapter 11 Bankruptcy Case arrives in your mail. A business that owes your company money has filed for Chapter 11 bankruptcy protection. What can you do to protect your company’s interests when a business relationship becomes a debtor-creditor relationship? Here are the most important things to know: Don’t violate the automatic stay
Bankruptcy Creditor .................... 1 Chair’s Message . ........................ 2 President’s Message . .................. 2 Western Regional Credit Conference ................................................. 4
Avoid the urge to use the notice of a debtor’s bankruptcy filing as an opportunity to make a last-ditch effort to get paid. As soon as the bankruptcy case is filed, an automatic stay goes into place that prohibits creditors from commencing and pursuing lawsuits against the debtor, enforcing judgments or lien rights against the debtor, or otherwise trying to collect the debt. While there are exceptions to the automatic stay and ways to get relief from the stay, they are limited and must be handled properly. Be sure to get good advice if you want to pursue any such alternative, because violation of the automatic stay is generally punishable by contempt, which can mean a fine or even criminal sanctions.
Key to Success ........................... 5
Stay informed
Credit Ambassador Award............ 10
The debtor is required to share some, but not all, court filings with its creditors. If you really want to stay informed, file a request with the bankruptcy court to receive copies of all filings. Just be prepared to receive a lot of paper. If you decide to retain a bankruptcy lawyer to protect your company’s interests, he or she will have access to the bankruptcy court’s electronic database of all filings. Consider attending the 341 meeting of creditors
NOF Scholarships ....................... 7 New Designee’s .......................... 7 Education & Events .................... 8 Credit Learning Center................. 9
International Corner.................... 11 Experian/Moody’s Analytics.......... 12 Consumer Credit Education.......... 14 Contacts..................................... 19
Not long after a bankruptcy is filed, a lawyer for the Office of the U.S. Trustee (UST) will conduct a meeting with the debtor, and creditors can attend. This meeting is a good chance to obtain general information about the bankruptcy process and the debtor’s case, and to have your questions answered. ...continue on page 18
7931 NE Halsey, Suite 200 • Portland, Oregon 97213 • Tel 503.257.0802 • Fax 503.257.0247 • www.nacmoregon.org
Page 1